Would China's Sovereign Wealth Fund Be a Menace to the USA?

• 作 者: Friedrich Wu Arifin Seah
• 机 构: Adjunct Associate Professor,S.Rajaratnam School of International Studies of the Nanyang Technologica
• 出 处: China & World Economy
• 发表日期: 2008年04期
• 关键词: Sovereign official investments political wealth reserves arrival dollar Wealth l

The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation (CIC) on 29 September 2007.The arrival of CIC has further heated up debate regarding sovereign wealth funds (SWFs) and their potential implications for global financial markets.This is because,in carrying out its investments,CIC can tap into China’s huge official foreign exchange reserves,which by April 2008 had surged to US$1.76tn.CIC’s initial working capital of US$200bn makes it the fifth largest SWFs in the world today.This article seeks to analyze CIC’s investment strategies,as well as their potential economic and political implications for global as well as US financial markets.

The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation (CIC) on 29 September 2007. Arrival of CIC has further heated up on issues regarding sovereign wealth funds (SWFs) and their potential implications for global financial markets. This is because, in carrying out its investments, CIC can tap into China’s huge official foreign exchange reserves, which by April 2008 had surged to US $ 1.76tn.CIC’s initial working capital of US $ 200bn makes it the fifth largest SWFs in the world today .This article seeks to analyze CIC’s investment strategies, as well as their potential economic and political implications for global as well as US financial markets.