CIC gets annual cash grants
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China Investment Corp will get annual cash injections from the government instead of just one-off infusion as the country looks for ways to invest its massive foreign exchange reserves, Caixin Century said on its website yesterday.
The central government will pump in "tens of billions" of dollars into the sovereign wealth fund, which is responsible for managing part of China's nearly US$3 trillion of foreign exchange reserves, the magazine said.
The Ministry of Finance will continue to sell special government bonds to purchase foreign exchange reserves as a source for the cash injection every year, the report cited unnamed sources as saying.
The National People's Congress has received details of the injection such as the plan to sell bonds, whose approval is being awaited, the sources said.
The government issued US$200 billion worth of special treasury bonds to help establish CIC in 2007.
Lou Jiwei, chairman and CEO of CIC, disclosed in a previous interview that the CIC, one of the world's largest sovereign wealth funds, has to make a profit of 300 million yuan every day just to pay the interest on the bonds and for operational costs.
