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In-Briefs

China/UK: Beijing Wants to Invest in UK to Diversify Assets

November 30, 2011
|
| Asia and the Pacific, Europe

Beijing is considering investing in infrastructure projects in the United Kingdom . . . London wants to improve its infrastructure in an attempt to boost growth . . . Lou Jiwei, the head of state-run China Investment Corporation (CIC), Beijing’s main sovereign wealth fund, announced that this form of investment could be a "win-win" situation . . . the CIC controls around $400 of China's foreign exchange reserves and has must invest it in ways that earns at least decent returns for Beijing . . . the majority of Beijing’s foreign reserves are held in US and European government bonds . . . Beijing wants to take a larger role in overseas infrastructure projects beyond the role of contractor . . . this could act as a cushion to protect Chinese assets from the volatile global economy . . . it could do so by diversifying beyond U.S. and European bonds and playing a direct role in local economies.

  
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