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China Buys Stakes in Coke, Apple

But avoids major US holdings in hunt for healthy returns

By Rob Quinn, Newser Staff

Posted Feb 9, 2010 4:10 AM CST

(Newser) – China's colossal sovereign wealth fund has steered clear of buying large chunks of US firms as it seeks better returns on its portion of the country's $2.4 trillion in foreign reserves. An SEC filing released yesterday shows that the $300 billion fund holds a relatively low $9.63 billion in equity US-listed companies, AP reports.

The incomplete filing reveals small, previously unknown China Investment Corp. stakes in American firms, including Coca-Cola, Apple and Goodyear. The fund also has a $1.7 billion stake in Morgan Stanley, but it usually shuns large, high-profile investments in the US, preferring to invest in commodity stocks that will benefit from Chinese demand for raw materials. The largest investment listed was $3.5 billion in Teck Resouces, a Canadian mining firm with operations in South America.

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CIC said in August it lost 2.1% on its global portfolio in 2008, which compares favorably to the huge losses suffered by similar investment funds. (Getty Images)

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CIC is willing to have a significant underweighting in the US. - Michael McCormack, executive director at Shanghai-based Z-Ben Advisors

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COMMENTS

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Showing 3 of 6 comments

CHRiSTFELD

Feb 9, 2010 11:42 AM CST

Don't call us, we'll call you....Mr Joshua.

Mr_Joshua

Feb 9, 2010 11:26 AM CST

Is end of the U.S financial empire at hand? Invasion by economics. Wait till they start spelling Coke in Chinese on the cans for the U.S market...lol. Or better still, they will just steal the recipe from the inside and then sell their shares. After all, who needs shares in the company when you have the recipe. And you can call me.....Mr Joshua

outoforder345

Feb 9, 2010 11:00 AM CST

@mr_joshua....you got that right

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China • Chinese economy • investment fund • sovereign wealth funds • China Investment Corp • fund manager

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China Buys Stakes in Coke, Apple