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China Sovereign Wealth Funds Announces 10% MTM Loss For May
The China Investment Corporation, also known as China's sovereign wealth fund, and the entity that allocates China's nearly $3 trillion in foreign assets, which in February filed it first ever 13-F statement disclosing just under $10 billion in holdings, has announced a 10% Mark-To-Market loss in the month of May according to RanSquawk. We are trying to get confirmation whether this is equivalent to a $1 billion loss on equity investments - we will get you more as we get it. In the meantime, here is the snapshot of CIC we conducted in February. With the recent 10% plunge, the fund has now wiped out all of its 2009 gains, which were announced at 11%!
Update from Reuters:
China's sovereign wealth fund gained 11 percent last year, but this year will be challenging, the fund's chief risk officer said on Tuesday.
Speaking at an Asian banking conference hosted by the San Francisco Federal Reserve, China Investment Corp (CIC) executive vice president and chief risk officer Jesse Wang called 2009 "a good year for us."
Gains for the fund's main overseas arm were over 17 percent, he said.
But this year, public equity market volatility has torpedoed returns, he said.
"May and June, because of the decline of the U.S. market and European market, we have about 10 percent mark to market losses," Wang said.
CIC, which has $300 billion under management, was set up in September 2007 with the goal of seeking higher returns for some of the country's stockpile of foreign currency reserves.
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WTF is wrong with the Chinese? Mark-to-market is so 2008! Call GS and ask how a quarter with no losing days is done.
Izzat sorta a circular thing ?
Hmmm...
Squid profit up<-->Client profit down...
Is that like taking one for the team? China never makes mistakes, 6000 years, Sun Tzu, Confucious, Lao Tzu, and all that miracle stuff. LOL
Falling EUR/USD probably contributed a lot of these 10%
what's the name of the NY Times putz who said "never short a country with $2trillion in foreign reseves?" well, hate to break it to him, but that reserve has shrunk by a few hundred billions in just a few weeks. any opinion about shorting China now?
My first reaction: if you're stupid enough to make money on the way up, you're likely stupid enough to lose it all back on the way down.
My second reaction: I made money on the way up, but thanks to ZH, I'm also making money on the way down.
Whoops.
Better start looking in the sofa cushions for that "lost" money.
Publishing the loss is embarrasing.
But telling the chinese govt you lost a yard? Not a meeting you want to have.
Wonder if they'll mail the CIC's families the bill for the bullet?
Not to worry, they should start investing in Shanghai real estate. I hear property prices are going up a gazillion percent a month. They should be in the black by a gazillion percent in no time at all! Ponzinomics is the sure way to growth.
Who's Ponzi scheme did they loose the most money on?
Thought: Could this be a Chinese play to wipe out western banks?
Rationale: M2M to the downside, the same junk assets that Western banks are using as their "capital" base? Any professionals out there know if this would fly or not?
Dunno if it flies, I like tha idea though.
Why the fuck are there sovereign hedge funds to begin with?!?!?
We're all hedge funds now.....thanks to Ben.....
Perhaps they should have just stuck to buying Gold.
Sounds like someone bought some Euros.
Maybe they are just bluffing so that they look like an easy target, all the while a treasury dump/bullion buying spree is in order.
Check out Hugh Hendry's video on youtube. He goes to China and shows all the empty office and unfinished buildings. Some of the developers have gone bankrupt.
Like others have said, it could be because of the falling Euro and Dollar currencies contributed to this huge 10% loss. It reminded me how different markets in America are in deep trouble, and nevertheless I have managed to see lots of people that bought dishwashers, cast iron grill pans and a variety of other frying pans, computers electric griddles and other electrical units that are very popular recently. Anyway, I hope that the economic situation would get better already, since I'm tired of this recession..