As we know, Chinese state owned entities are investing more and more in overseas establishments; 3 more deals have been finalized during 22-30 Oct 2007.
It was confirmed on 22 Oct 2007 that Chinese investment bank Citic Securities has brokered a deal with Bear Stearns according to which they will cross-invest in each other in return for equity.
After this, Industrial & Commercial Bank of China Ltd (China's biggest bank; state-owned) said on 25 Oct 2007 that it will buy a 20 per cent stake in South Africa's biggest lender for $5.5 billion (euro3.9 billion).
And now China's Social Security Fund (SSF) is negotiating with 3 of the biggest private equity (PE) firms of US for a minority stake. The 3 firms, Carlyle, KKR and TPG themselves are seeking foreign investments aggressively.
The most interesting aspect of the latest deal is that SSF is looking to invest in PE firms when the previous investment by China's SWF in Blackstone has not given expected returns as of now. Blackstone's stock price has fallen by about $6 from $31 since June when the deal was done.
Wednesday, October 31, 2007
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