(New York Times) China Development Bank, the state-controlled lender, said Tuesday that it was forming a 35 billion yuan ($5.1 billion) investment fund. The wholly-owned subsidiary will invest in projects that will aid in China’s development through direct and private equity investments, the bank said in a statement. The fund will also help Chinese companies acquire resources abroad.

The development bank, whose investments include a 3 percent stake in the British banking group Barclays, said that it was folding some of the nonfinancial stakes it holds, including invetsments in some natural-resource companies, into the new unit. Those companies include Aluminum Corporation of China, Jinchuan Group and the Jincheng Anthracite Mining Group.

It will also incorporate its stakes of foreign development funds like the China-Africa Development Fund, Haitong-Fortis Private Equity Fund and Bohai Industrial Fund.

The China Finance Ministry controls 51 percent of the China Development Bank, with the other 49 percent controlled by China Investment Corporation, the nation’s $200 billion sovereign wealth fund. Full Article: http://dealbook.blogs.nytimes.com/2009/09/01/china-development-bank-forms-investment-fund/#comments

Comment:

China is conitnuing to lock down resources world-wide…they have made deals in South America, Africa and Russia. They are very strategic, savvy and aggressive in the global economy…as we sit back and do nothing…(for many reasons I guess) –the benefit for China is locking down resources for their still early and massive growth while getting out of Dollars ie getting their massive forein currency reserves out of cash…as inflation will wipe out fiat money…anyway
I posted three recent articles on this subject on my blog:
1) China Investment Corp. (CIC) Putting Billions in Hedge Funds, Chairman Lou Says , Trying to get out of Cash ASAP http://commoditytradealert.com/blog/?p=2617
2) Commodities rally on ever-rising China demand http://commoditytradealert.com/blog/?p=2623
3) PetroChina Spends $1.7 Billion on First Canada Oil-Sands Stakes as China continues to Lock-up Oil Supply Worldwide http://commoditytradealert.com/blog/?p=2641
There’s more posted too…like buying a stake in the world’s largesct commodity trader Glencore…and how manufacturing growth is accelerating etc etc etc