China’s CIC buys into Moscow Exchange
20 February 2013
By Asia Asset Management
China’s sovereign wealth fund China Investment Corporation (CIC) has invested in the Moscow Exchange, according to a report from the Oriental Morning Post.
CIC Chairman and CEO Lou Jiwei told local media that the deal will serve a short-term profit-making purpose, going against the firm’s traditionally long-term investment philosophy. He did not reveal either the proportion of shares CIC purchased or the amount invested.
The Russian state-owned Russian Direct Investment Fund (RDIF) recently invested US$80 million in the Moscow Exchange, for a 4.5% stake. RDIF then helped the bourse bring in four overseas institutional investors, including the European Bank of Reconstruction and Development, Cartesian Capital Group, BlackRock, and CIC.
Last June, CIC teamed up with RDIF to form a Russia-China Investment Fund. The fund aims to raise $2 billion to $4 billion, with $1 billion committed by CIC and its related parties, and another $1 billion by RDIF. The fund will seek to raise an additional $1 billion to $2 billion from third-party international investors.
According to the latest CIC financial report, CIC had total AUM of $482 billion as of the end of 2011, compared to $409 billion in the previous year.
More News >
Discuss: China’s CIC buys into Moscow Exchange