Yep. It doesn't pay someone else to go to the casino with your money.
China will get back her money with profit eventually. But it is bad
image to be yanked around and not have control of ride.
CIC may hold Blackstone stakes for 5 to 7 years
By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2008-03-06 17:38
http://www.chinadaily.com.cn/bizchina/2008-03/06/content_6514855.htm
China Investment Cor****ate Ltd (CIC), the nation's sovereign wealth
fund, will hold its Blackstone stakes for five to seven years, Finet,
a financial services provider in Greater China, re****ted today citing
Wang Jianxi, deputy general manager.
"The CIC won't gain only from share price fluctuations in the
Blackstone deal," Wang said yesterday, adding the investment group can
also profit from dividends.
Blackstone's share price dropped sharply, but Wang said CIC won't be
bothered by short-term changes in Blackstone and Morgan Stanley share
prices, as the government-funded investment arm is a long-term
financial investor.
He also said CIC won't rule out the possibility of holding the
Blackstone stake for longer if yields are good in the future.
Wang added that in terms of private equities' net income and profit in
the United States, Blackstone still came out on top of the list.
At the same time, Wang admitted that CIC will not buy any more
financial assets like Blackstone and Morgan Stanley, as sovereign
wealth funds are not tolerant of high risks.
CIC was set up in September 2007 with an initial capital of US$200
billion drawn from China's massive foreign exchange reserves.
In December last year CIC agreed to take a US$5 billion stake in
US-based Morgan Stanley. It also invested US$3 billion in Blackstone
Group and put US$100 million into the China Railway Group initial
public offering in Hong Kong.
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