China injects $30B on wealth fund for Euro spree

China’s US$410-billion sovereign wealth fund received a US$30 billion injection from the government last year.

China Investment Corporation received the additional capital from the State Administration of Foreign Exchange late last year, according to the China Daily quoting the fund’s deputy general manager, Wang Jianxi.

The money would be used to buy assets in debt-stricken European countries, Wang said.

CIC “in the short term would devote itself to investing in the region in an active way,” he said.

It was earlier reported by state media that CIC had also received US$50 billion from the central bank after the Chinese Lunar New Year holiday in January. The combined capital injections would increase the value of CIC’s assets to US$490 billion, based on the latest available figures.

In January CIC bought 8.68 per cent of British utility company Thames Water – the largest water and sewage service provider in the country – through a wholly-owned subsidiary.

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