China Just Armed Its Sovereign Wealth Fund With $200 Billion In Fresh Cash
China's sovereign wealth fund, China Investment Corp, is about to be armed with as much as $200 billion in additional cash by the country's treasury, according to the Financial Times.
The previous size of the fund was $332.4 billion, according to the SWF Institute.
The goal of the fund is to take some of China's foreign reserves and invest them abroad, thus diversifying the country's holdings.
In this case, considering all of China's anti-dollar talk, it's likely they'll be taking their dollars and buying assets with that. While the dollar may be pretty fungible, it's best used to buy other dollar denominated assets, like commodities or American companies.
Earlier reports today suggested China was plotting investments in energy and precious metals, so it's more likely the fund will be buying gold and oil than shares of Apple.
Read more: http://www.businessinsider.com/cic-sovereign-wealth-fund-200-billion-2011-4?utm_source=dlvr.it&utm_medium=social&utm_campaign=moneygame#ixzz1KYLXJ8QR
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