The Economic Observer reports that China is mulling the creation of yet another SWF:
“China’s state-owned assets watchdog was planning to consolidate some companies under the control of the central government (central SOEs) into an asset management firm to better govern state resources.”
This new entity is being referred to as “CIC No. 2″. It would be an amalgamation of several under performing SOEs and managed by the State Owned Assets Supervision and Administration Commission. The difference between this entity and the CIC would be its domestic focus, making it more akin to the Central Huijin Investment Company (a CIC subsidiary).
While the temptation is to view this as an endorsement of CIC’s performance to date, the decision to set up ‘CIC 2′ is based more on a pre-existing policy of consolidating SOEs. Nevertheless, it is interesting to see another SWF coming into shape during this economic crisis.
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