SWF Radar CIC

Bloomberg reports that, “China’s state-controlled fund [China Investment Corp.] may buy as much as 49 percent of [Morgan Stanley], said [a person familiar with the matter], who declined to be identified because the talks aren’t public and may end in no agreement.”

The article adds that, “CIC’s president, Gao Xiqing, is in the U.S. with Wei Christianson, who runs Morgan Stanley’s business in China, the Financial Times reported today.”

Here’s the Financial Times article.

XFN-ASIA writes that, “Huijin Investment Co, an investment arm of China Investment Corp (CIC), will buy shares in three of the country’s big four state-owned banks [China Construction Bank, Industrial and Commercial Bank of China (ICBC) and Bank of China], the official Xinhua news agency reported, citing CIC sources.”

Here is the original English-language report by Xinhua.

FT Alphaville writes, “Is Morgan Stanley really in talks with Citic, as reported by CNBC? Not quite, according the FT's Beijing Correspondent, Jamil Anderlini. … But CIC, the Chinese sovereign wealth fund which already owns 9.9 per cent of Morgan Stanley, is definitely talking to the investment bank.”

MarketWatch reports that, “China Investment Corp. [CIC], China’s sovereign wealth fund, said Thursday it hasn’t been approached to take an additional stake in U.S. investment bank Morgan Stanley, which is holding merger talks with several potential suitors.”

Esquire has published a profile of Gao Xiqing, general manager of the China Investment Corporation (CIC).

Institutional Investor has published an exclusive interview with Lou Jiwei, chairman of the China Investment Corporation (CIC).

Portfolio.com writes that, “Blackstone gave it a black eye and its Morgan stake is a mess. Still, the head of China's sovereign wealth fund says he's sticking with his big bet on financials.”

Note that the article is accompanied by a great picture of Lou Jiwei and Gao Xiqing, board chairman and general manager respectively of China Investment Corporation. It’s definitely worth a click.

Dow Jones writes, “‘Sorry, I haven’t heard this,’ Jesse Wang, CIC Executive Vice President and Chief Risk Officer, told Dow Jones Newswires when asked whether the CIC was looking into buying a stake into Lehman.”

The Financial Times reports that, “Bank of America, JC Flowers & Co, the financial investor, and China Investment Co, the Chinese sovereign wealth fund, are considering a possible joint bid for Lehman Brothers, the embattled Wall Street bank.”

The Oxford International Review’s SWF blog has published an interview with the executive director of Shanghai-based Z-Ben Advisors’ Michael McCormack.

Among other things, he says that, “I think the initial response – the one that preceded study, dialogue or serious appraisal – was predictable: certain sections of the US legislative branch (and their think-tank armourers) sounding alarms, a consensus for caution expressed in the EU, Britain rolling out the welcome mat… Since early summer 2008, I’m pleased to see (as I’m sure CIC is) a more reasoned set of responses emerging.”