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发表于 2011-1-18 22:46:49
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BEIJING—China Investment Corp. has chosen Toronto for its first foreign representative office, an extension of the $300 billion sovereign-wealth fund's broader internationalization effort that highlights Canada's relative openness to Chinese investment.
CIC last year set up a wholly owned unit in the Chinese territory of Hong Kong, its first outside mainland China. The Toronto office, which has been under consideration since at least the middle of last year, will be opened soon, according to a person at CIC familiar with its plans. The person didn't give an exact timetable.
The choice of Toronto for CIC's first foreign office—rather than the much larger financial center of New York nearby—is likely to focus fresh attention on the Chinese fund's frustrations about the investment environment in the U.S. and some other Western countries. CIC and other Chinese investors have frequently complained of resistance in the West from politicians and officials wary that their investment activities may be influenced by political considerations.
That issue was reinforced Tuesday when Yi Gang, head of the State Administration of Foreign Exchange, which manages China's $2.8 trillion in foreign-exchange reserves, complained that his organization is constrained by countries' attitudes in how it can invest.
The knowledgeable person at CIC didn't say why it chose Toronto. But a person close to CIC said last spring that Canada was one of the few Western countries that had consistently made it feel welcome.
CIC's first major investments—and still the biggest ones it has made public—were multibillion-dollar stakes in U.S. financial firms Morgan Stanley and Blackstone Group LP that it bought around the time it was established in 2007.
But since then some of its biggest publicly announced investments have been in Canada. In 2009 it invested $1.5 billion in Vancouver-based Teck Resources Ltd., a mining company. And last year it spent 817 million Canadian dollars (US$827.4 million) to buy nearly half of a joint venture in Alberta to develop the costly-to-produce mixture of clay, sand and bitumen known as oil sands. The deal was swiftly approved by Canadian regulators.
CIC's Toronto move comes as Chinese financial institutions are starting to expand their global footprint more actively, looking for business in developed markets as China increasingly becomes a major source of capital.
CCB International (Holdings) Ltd., China Construction Bank Corp.'s investment-banking arm, is planning to open a New York office this year, a person familiar with the situation said Tuesday. CCB International already has overseas offices in London, Hong Kong and the Middle East.
And Industrial & Commercial Bank of China Ltd. is launching five new branches in Europe this month, more than doubling its presence there.
Natural resources have accounted for a large share of CIC's recent investments. Over the weekend, Jesse Wang, CIC's executive vice president, indicated that is likely to continue, saying it would be good for China to invest its foreign-exchange reserves in overseas energy and resources assets, among others.
Toronto has set itself up as a hub of mining-sector expertise, with a large portion of all mining company equity offerings globally being done on the local exchange.
CIC has developed connections in Canada beyond its natural-resource investments. One of the top investment advisers to CIC is Felix Chee, a Canadian resident who formerly ran the University of Toronto's endowment fund. David Emerson, a former Canadian trade and foreign affairs minister, is one of 10 foreigners on CIC's international advisory council.
Given CIC's highly centralized decision making, the new Toronto office doesn't necessarily mean a flood of future deals originating in Canada, analysts say. But it could be a way for the Chinese fund to better monitor its investments and help expose it to new opportunities.
—Victoria Ruan, Liu Li and Prudence Ho contributed to this article.
Write to Dinny McMahon at dinny.mcmahon@wsj.com |
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