CIC Becomes A Central Instrument Of Macroeconomic Policy

One can always count on China to take on an innovative approach. Faced with excess liquidity and asset price bubbles, the Chinese government has chosen to use its sovereign wealth fund to exercise damage control: Central Huijin Investment Co, which is the subsidiary of China Investment Corporation (CIC) in control of China's largest state-owned banks, is planning to sell bonds in the interbank bond market. Hujin is raising between RMB50-80bn. The bond sale remains subject to the State Council's final approval, which is expected. Hujin owns between 35% and 68% of China's biggest banks, namely ICBC, Bank of China, China

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