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Official: China has no immediate plans for more Blackstone-style foreign deals

Official: China has no immediate plans for more Blackstone-style foreign deals

China has no immediate plans for more investments like its deal with U.S. private equity firm Blackstone Group LP and will weigh political sensitivities when making future investments abroad, an official with a government-owned investment company said Monday.
The state investment fund that will invest US$3 billion (euro2.2 billion) in Blackstone has not formally been created, but Chinese authorities made the deal early because the U.S. company is planning a stock market listing, said Jesse Wang, chairman of government-owned Jianyin Investment Co., which signed the deal with Blackstone.
"We haven't been looking for other deals yet, because as you know, we haven't established this company yet," Wang said.
The Blackstone agreement, announced over the weekend, marks China's long-anticipated move to diversify how it invests its massive foreign exchange reserves.
Once the state-run investment fund is established, its managers will consider political sensitivities abroad when they make investments, Wang told The Associated Press.
"Surely, we don't want to (get) involved in any kind of political concerns. Maybe the fund is sizable, and also people may worry that it's from China and a state investment vehicle," Wang said.
"Therefore, I think it will be always an issue that the new company must be very careful," he said. "Basically, I think they are going to have mostly commercial kind of investments, not involving sensitive investments."


Updated : 2021-10-21 11:35 GMT+08:00