The purchases were small but suggest Beijing does not rely solely on its newly established $200 billion sovereign wealth fund, the China Investment Corp (CIC), to make direct investments in Western financial firms using the world’s largest forex hoard. SAFE Investment declined to comment, as did the State Administration of Foreign Exchange (SAFE), the foreign exchange regulator in charge of foreign exchange reserves and implementing foreign exchange policy. However, a government source in Beijing confirmed that the forex regulator has long had a unit in Hong Kong, and that it is tasked in part with investing some of the country’s foreign exchange reserves. The lack of clarity around the SAFE Investment Co investments in Australia raised questions about the transparency of Chinese sovereign investments overseas, the FT said. The Financial Times said SAFE had denied knowledge of the Australian bank investments or any investments in London-listed companies and asked the newspaper not to publish any details. read more
[Tags]investment, investments, safe, exchange, foreign, 1, forex news[/Tags]
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