Jun. 29, 2011 (China Knowledge) - China Investment Corp, the country's US$300-billion sovereign wealth fund, may obtain a cash injection of US$50 billion this year, since the Chinese government expects to diversify its foreign exchange reserves, sources reported, citing unnamed executives of CIC.
CIC has submitted an application to the State Council for the new round of capital injection which will be approved as soon as the fund completes a reshuffle of its investment department.
An unnamed executive said that CIC has just finished its new reshuffle for investment department, and Li Keping, a former vice-chairman at China's National Pension Fund, will be appointed as chief investment officer.
Li will become the third key person of CIC, taking on the CIO role from Gao Xiqing. Currently, Gao is the fund's CIO and general manager.
Wang Jianxi, CIC's executive vice-president and chief risk officer, said in January that fund in CIC has exhausted its operating capital and has applied for a new capital injection.
The company's board of directors intends to raise more funds and accelerate expansion in overseas investment, especially in the developing markets, said CIC Chairman Lou Jiwei.
In 2010, the rate of return from the fund's investments was almost the same as the 11.7% recorded a year earlier, and higher than the average rate for China's other large investment firms.