China is accelerating the pace of capital export. A series of overseas acquisitions shows that the portfolio investment strategy of an increasingly complex and flexible sovereign wealth fund and of large national enterprises is taking shape. China is adapting itself to different environments and is learning to manage its risk. It is showing patience in adopting different strategies for different regions, assets and political risks, and even different geo-political environments.
This year, China’s overseas acquisitions relying on foreign exchange reserves are going industrial. China Investment Corporation has concentrated on the financial field and its investments in Blackstone and MorganStanley have aroused much controversy. The Industrial and Commercial Bank of China has made it clear that for the moment it will take no interest in acquiring financial assets. This year, some national enterprises under State-owned Assets Supervision & Administration Commission have advocated that China's foreign reserve should be invested in industrial and strategic resources.
China's sovereign overseas assets acquisition strategy, based on huge foreign exchange reserves, is following a pattern:
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