Singapore's GIC doubles stake in China's CICC

December 09, 2010 | 17:30

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The Government of Singapore Investment Corporation (GIC) said Thursday it has more than doubled its stake in Beijing-based China International Capital Corporation (CICC).

The state agency increased its holding in the leading Chinese investment bank to more than 16.35 per cent from 7.35 per cent after it bought up part of the shares held by Wall Street giant Morgan Stanley, a spokeswoman said.

CICC was founded in 1995 by China Construction Bank and Morgan Stanley, which invested $35 million in the joint venture at the time.

Apart from GIC, global asset manager Kohlberg Kravis and Roberts, private investment firm TPG and insurance group Great Eastern Life also bought Morgan Stanley's 34.3 per cent stake in CICC.

CICC chairman Li Jiange welcomed the development, saying in a statement: "The change in our shareholding will have a very positive strategic impact on CICC and benefit its long-term development.

"The introduction of some of the most prominent international institutional investors will help CICC in its future business development and international expansion."

The CICC statement did not mention the amount paid by GIC, which typically does not release such information.

GIC, which was set up in 1981, is one of Singapore's two sovereign wealth funds -- along with Temasek Holdings -- and invests the city-state's foreign reserves of well over $100 billion with a 20-year horizon in mind.

It announced in September that it would concentrate its investments in Asia.

AFP

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