BlackRock, CIC to launch fund – report

Liu Erfei, chairman of Bank of America Merrill Lynch's China operations, will leave the bank and head up the fund, Reuters reported, citing a source familiar with the situation.

The fund would mainly focus on investing in companies outside China that offer technologies or resources the country needs, leveraging BlackRock's strengths and familiarity with global markets. This includes co-investing with Chinese companies making offshore acquisitions or taking stakes in the Chinese operations of global companies.

It will have a strategic mandate as well as financial objectives, with an aim to "help China attract the right kind of foreign investment and helping Chinese firms globalize", a source told the Financial Times.

The sovereign fund, which managed $410 billion at the end of 2010, has been stepping up its overseas investments. Last year, CIC earned 11.7% on the money invested abroad. However, the new joint venture vehicle will also invest in China, said Hu Bing, a senior official at CIC.

With some of CIC's oversea investments underperforming, the fund has been reportedly looking to invest more domestically. Its recent plans involve backing funds that have flexible mandates and can invest in China or beyond. It has also lobbied international players for co-investment opportunities when they do deals in the mainland and is indirectly investing in Chinese real estate through its own units.

Earlier this week, it was reported that CIC has obtained an additional $50 billion from China's central bank, having already received a $30 billion late last year.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Funds
• China
• CIC
• Outbound investment
• BlackRock