SWF Radar LouJiwei

Thomson Reuters reports that, “The chairman [Lou Jiwei] of China’s sovereign wealth fund [China Investment Corp. (CIC)] has defended its operations, saying its investment in U.S. private equity firm Blackstone will pay off in the long run, and noted it holds over 90 percent of its assets in cash just as global equity markets are plummeting.”

XFN-ASIA reports that, “The European Union is open to ‘responsible investment’ from China Investment Corp (CIC), EU Trade Commissioner Peter Mandelson said ahead of a meeting with Lou Jiwei, chairman of the 200 bln usd sovereign wealth fund [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.

Bloomberg reports that, “Russia and China may be interested in buying stakes in Deutsche Bahn AG when the German state-owned railway sells shares this year. German Finance Minister Peer Steinbrueck discussed the initial public offering with China Investment Corporation chairman Lou Jiwei, the minister told reporters in Beijing today.”

China Daily reports that, “China Central Huijin Investment Corp, the subsidiary of the nation’s sovereign wealth fund [the China Investment Corporation (CIC)], formed a new board of directors on Friday, appointing Lou Jiwei, former finance vice-minister, as its chairman.”

Reuters writes that, “Global economic instability has created huge investment opportunities for China Investment Corp (CIC), but the sovereign wealth fund will be careful not to destabilize countries where it operates, its head [Lou Jiwei] said on Friday.”

The article adds that, “He said he supported an initiative by the International Monetary Fund to draw up guidelines for the best practice of sovereign wealth funds, but he would not accept outside pressure for mandatory transparency rules. … Lou said best practice was subjective because there were five different categories of sovereign wealth funds, each of which operated along different lines.”

It quotes Lou as saying that the CIC is not planning on leading the way on SWF best practice: “We are not going to be the leader. We are only half a year old. There are older brothers who are 30 years old. Let them be the leaders.”

Lou Jiwei, chairman of the China Investment Corporation, is on Time’s new list of the world’s 100 most influential people, the Time 100.

His profile for the list was written by Stephen S. Roach, chairman of Morgan Stanley Asia.

The Times reports that, “Alastair Darling will begin talks [Tuesday] to urge the head of China’s sovereign wealth fund [Lou Jiwei of the China Investment Corporation] to open its main overseas office in London.”

ChinaStakes.com reports that, “The China Investment Corporation (CIC) is unique among sovereign wealth funds in that its initial capital came not from fiscal surplus, but from special government bonds. It is now having trouble paying back the huge interest for these bonds. ‘Regarding the $800 billion fund, the company needs to earn 300 million Yuan every working day,’ said CIC Chairman Lou Jiwei. February 29th [2008] was supposed to be the first interest payment day for the initial special government bonds… However, the CIC still hasn't paid the interest.”