China Investment Corp. and Blackrock Inc. (>> BlackRock, Inc.) plans to launch a joint China-focused investment fund to be run by Liu Erfei, currently chairman of Bank of America Merrill Lynch's China operations, the Financial Times reported on its website Wednesday, citing people familiar with the matter.
Senior CIC official Hu Bing told a sovereign wealth funds and pension funds conference in Beijing that one purpose of the fund was to invest in China itself, but others familiar with the matter said the primary focus would be to invest in companies outside China with technologies or resources useful to China, the FT reported.
The fund could co-invest with Chinese companies making foreign acquisitions or taking stakes in the Chinese operations of multinationals, one of the people said, the FT reported.
Blackrock and Liu both declined comment, the FT said.
Full story: http://www.ft.com/intl/cms/s/0/076adb32-8e96-11e1-aa12-00144feab49a.html#axzz1t5uy9KxE.