Chinese Pension Fund Considers US Private Equity Deals

Burned by Blackstone, Beijing takes it slow
By Jim O'Neill,  Newser User
Posted Oct 30, 2007 9:25 AM CDT
Chinese men transport a tall ladder across a road in Beijing, China, Tuesday, Sept. 4, 2007. According to projections by Goldman, Sachs & Co., a Wall Street investment bank, if China stays on the same...   (Associated Press)
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(Newser) – China, suffering buyer’s remorse after investing in US private equity firm Blackstone, is taking its time before diving back into that end of the financial pool, reports the Financial Times. The Big Three of US equity firms, Carlyle, KKR, and TPG, are each seeking a minority investment from China’s Social Security Fund, which has some $61.5 billion in assets.

China wants to export capital, but more effectively than the Japanese did in the 1980s. China’s Citic Securities and Bear Stearns recently announced plans to invest $1 billion in each other, a swap that liberates the parties from concerns over stock prices. Meanwhile, Blackstone shares have dropped 21% since June. ”The Blackstone deal is not as good as we thought,” said a China Investment Corp. exec.