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CIC eyes more US investments

The $800bn sovereign wealth fund said it is willing to accept regulatory scrutiny by the federal government as long as there is ‘no double standard’.

China Investment Corporation, the country’s $800 billion sovereign wealth fund, is looking to boost alternative investments in the US market, including private equity and infrastructure, CIC’s chairman Ding Xuedong said on Monday. 

Ding said that president-elect Donald Trump’s plan to expand US infrastructure will provide investment opportunities for the fund. He estimated that America will need at least $8 trillion to revamp its current infrastructure stock, a sum the US government and domestic investors will not be able to provide alone. 

“[The US] has to rely on foreign investments,” said Ding at the Asian Financial Forum in Hong Kong. 

He called for fair treatment of Chinese investors in the US as regulators review foreign investments on the grounds of industry entry, national security and antitrust issues. He added that CIC is willing to accept US regulatory scrutiny, as long as there is “no double standard”. 

CIC has over $200 billion in overseas investments, 40 percent of which are in the US, Ding said. 

The Chinese sovereign wealth fund set up an outpost in New York in December 2015, with a view to expand its investment footprint in the Americas. In addition to exposure through fund investments, the Chinese investor made two direct infrastructure deals in 2016 in Australia, backing Port of Melbourne and logistics company Asciano as part of consortia with fund managers and other institutional investors.