China stake in Australian firm approved

China stake in Australian firm approved
06-11-2009

Australia's foreign investment regulator has approved a Chinese investment in one of the country's iron ore producers.

Wuhan Iron and Steel will buy a 15 percent stake in Centrex Metals for US$247 million.

This will allow the third largest steel company on the mainland to tap into iron ore resources in South Australia, after a similar deal by Baosteel last month.

There's been controversy over foreign ownership of the country's natural resources.

New US weekly jobless claims fall

New US weekly jobless claims fall
06-11-2009

Initial claims for US unemployment insurance benefits fell more than most economists expected last week, official data showed Thursday.

New claims for jobless benefits dropped to a seasonally adjusted 512,000 during the week ended October 31, the Labor Department said.

The number was nearly four percent below the average economist forecast of 522,000, and was the first decline following two weeks of increases.

Wall St ends sharply higher

Wall St ends sharply higher
06-11-2009

US stocks rose sharply on Thursday.

The market's advance was broad-based, and the Dow ended above 10,000 for the first time in two weeks.

It jumped 203.82 points, or 2.08 percent, to finish at 10,005.96.

The Standard & Poor's 500 Index gained 20.13 points, or 1.92 percent, to 1,066.63.

The Nasdaq Composite Index rose 49.80 points, or 2.42 percent, to close at 2,105.32. The US dollar was lower.

Oil prices were also down.

New York's main contract, light sweet crude for delivery in December sank 78 cents to close at $US79.62 a barrel.

Gold was trading at $1,090.40.

Yam warning over global monetary policy

Yam warning over global monetary policy
15-09-2009

The outgoing chief executive of the Hong Kong Monetary Authority, Joseph Yam, says central banks around the world face a difficult choice over when to tighten monetary policy.

He said doing so too soon had the potential to curb economic recovery, while maintaining the current loose monetary policy might lead to inflated asset prices.

Mr Yam said the dilemma faced by Hong Kong was made more difficult because its monetary policy followed that of the United States.

Obama says new stimulus package unlikely

Obama says new stimulus package unlikely
15-09-2009

One year on from the collapse of the investment bank, Lehman Brothers, President Obama has suggested - in a television interview - that he's unlikely to introduce a second economic stimulus package.

The demise of Lehman Brothers signalled the start of what became a global credit crisis, and led to the US government having to prop up its banking system on an unprecedented scale.

Bank crisis lessons 'not learned'

US President Barack Obama

Bank crisis lessons 'not learned'
15-09-2009

A year after Lehman Brothers collapsed, a British think-tank has warned the lessons of the crisis have not been learned.

The Institute for Public Policy Research (IPPR) says the rapid return to the City of London's bonus culture shows real reform has been "very limited".

The warnings echoed a speech by US President Barack Obama, who warned of complacency in the banking sector.

Also, British Prime Minister Gordon Brown said that there was "unfinished business" with the banking sector.

"Alarm bells should be ringing with the early signs of a 'back to business' attitude in the City and little evidence that policymakers are taking measures to ensure the next economic recovery is better balanced than the last one," said Tony Dolphin, senior economist at the IPPR.

The report warned that unless urgent action is taken, the banking crisis may not be the last of its type.

China accuses US of abusing trade rules

China accuses US of abusing trade rules
15-09-2009

The Ministry of Commerce says a US decision to impose added duty on mainland-made tyres is an abuse of World Trade Organisation safeguard measures.

Speaking at a news conference in Beijing, a spokesman for the Ministry said the duties send the wrong message to the world.

The tyre duty was applied for the first time by Washington to "safeguard" provisions Beijing agreed to before joining the World Trade Organisation in 2001.

The safeguard can be invoked if a surge in imports hurts US manufacturers. China promptly said it would seek consultations with Washington over the duties - a preliminary step toward asking for a WTO ruling on the measures.

The spokesman said that Beijing does not want to see the case negatively impact Sino-US ties, but added that Chinese officials would reiterate their opposition to trade protectionism at the upcoming G20 summit of world leaders in Pittsburgh.

The Ministry said on Sunday it would launch its own investigation into chicken parts and automotive imports from the United States.

Geithner says US economy stabilising

Geithner says US economy stabilising
19-05-2009

The American treasury secretary, Timothy Geithner, has given his most optimistic comments on the state of the country's economy since the beginning of the global financial crisis last year.

Speaking in Washington, Mr Geithner said that the US economy had clearly stabilised but stressed that a bumpy road to recovery still lay ahead.

Lula arrives in China to improve ties

Lula arrives in China to improve ties
19-05-2009

The Brazilian President, Luis Ignacio Lula da Silva, has arrived in China, as relations continue to deepen between the two giant developing economies.

President Lula earlier called for bilateral trade to be conducted in Brazil's and China's own currencies, in a further challenge to the global dominance of the dollar.

Mixed signals from mainland economy

Mixed signals from mainland economy
13-05-2009

China's factory output growth slowed in April, but the pace of retail sales growth surprisingly accelerated. "It is important not to attach too much importance to one particular data point and to recognise that any recovery in China is not going to proceed in a straight line," said Brian Jackson, an economist with Royal Bank of Canada in Hong Kong.

"Policy stimulus is having an impact on domestic demand, but weak external demand is still dragging down overall growth," he said. Growth in factory output slowed to 7.3 percent in the 12 months to April, below analysts' forecasts of a rise of 8.3 percent, which was also the reading in March.

The moderation was consistent with a 22.6 percent drop in China's exports last month and suggested factories may have jumped the gun in March by increaasing output and adding to inventories in expectation of orders that did not fully materialise. Zhu Baoliang, deputy director of economic forecasting at the State Information Centre, a government think-tank, called the rise of 7.3 percent "okay" and said it was no cause for concern.

"It means the manufacturing industry is still on the path of recovery. Industrial production is stabilising, but we may also see some short-term fluctuations due to inventory adjustments," he said.

Bank of America selling CCB stake

Bank of America selling CCB stake
13-05-2009

It's been widely reported that Bank of America is seeking buyers for part of its stake in China Construction Bank.

The American bank is trying to boost its capital by selling one third of its 16.7 percent stake, after the US regulators required the bank to fill a capital hole of US$34 billion last week.

Singapore's state-owned investment firm, Temasek, and a private equity fund, Hopu Investment Management, are said to be potential buyers.

China's inflation weakens further

China's inflation weakens further
11-05-2009

China's inflation weakened further in April, with the consumer price index falling 1.5 percent from a year ago, the government said.

Compared with a month earlier, the index, the main gauge of inflation, was down 0.2 percent, the National Bureau of Statistics said in a statement.

The continued decline in consumer prices comes as China struggles with the most serious economic slowdown in nearly two decades, brought about by the global financial crisis.

The World Bank has forecast that China's economy, the world's third-largest, will expand by 6.5 percent this year, the lowest rate of growth since 1990.

In March, consumer prices were down 1.2 percent from a year earlier, according to previously released data. In the first four months of the year, the consumer price index fell 0.8 percent from the same period in 2008, according to the bureau.

UK to boost economic ties with China

UK to boost economic ties with China
11-05-2009

British finance minister Alistair Darling has pledged to further strengthen ties between London and Beijing at a Britain-China economic summit.

In a comment piece in the Times newspaper he said the two countries had to do more to push forward an agreement reached at last month's G20 summit in London, promote ties between the two financial markets, enhance trade links and tie future growth to environmental sustainability.

"We must do more to seize the shared opportunities to learn, trade and invest," Chancellor of the Exchequer Darling wrote, ahead of the summit in London. "Thousands of jobs, now and in the future, depend on it."

Ten US banks fail 'stress tests'

Ten US banks fail 'stress tests'
08-05-2009

Ten of America's largest 19 banks need a combined US$74.6 billion of extra funds to boost their cash reserves.

That is the main finding of the so-called "stress tests" to see if the banks have sufficient capital to cope should the recession worsen. Bank of America is the most at risk, needing an additional US$33.9 billion.

"Our hope with today's actions is that banks are going to be able to get back to the business of banking," said US Treasury Secretary Timothy Geithner. Other banks that need more money include Wells Fargo, which is said to require US$13.7 billion, and GMAC, the financial arm of General Motors, which needs US$11.5 billion.

Citigroup requires an additional US$5.5 billion of funds, and Morgan Stanley has been told to find US$1.8 billion. Some of the banks have already indicated how they intend to raise the money they need by private means such as asset sales, rather than having to secure any additional government loans.

The 19 banks that were tested by Treasury Department and Federal Reserve officials account for two-thirds of the total assets of the US banking system, and more than half of the total amount of credit in the US economy. Mr Geithner said earlier that no US bank being screened by regulators was at risk of insolvency.

General Motors posts Q1 loss of US$6B

General Motors posts Q1 loss of US$6B
08-05-2009

General Motors, the largest United States car maker, has announced that it made a loss of nearly six billion US dollars in the first three months of the year.

The company said it had experienced a decline in revenue in all regions of the world.

Mainland carmaker may bid for Volvo

Mainland carmaker may bid for Volvo
08-05-2009

The mainland carmaker, Geely, is believed to have moved a step closer to buying Volvo. Bloomberg says the biggest privately-owned carmaker on the mainland visited Volvo's factory in Sweden and scrutinised its books last month, along with two other bidders.

The US company Ford owns Volvo. Ford is hoping to raise US$2-billion from the sale.

At the same time, the Wall Street Journal says Geely has submitted a separate bid to buy another Swedish carmaker - Saab - from General Motors.

NY Times threatens to close Boston Globe

NY Times threatens to close Boston Globe
05-04-2009

The New York Times has threatened to shut down the Boston Globe unless unions at the money-losing daily agree to pay cuts and other cost-saving measures, the newspapers reported.

The Times, citing a "person briefed on the talks," said the Times was seeking US$20 million in savings at the Globe, which was purchased by the Times for $1.1 billion in 1993.

The Globe reported that Times executives had met with union leaders at the Boston newspaper on Thursday and demanded concessions such as pay cuts, an end to pension contributions and the elimination of lifetime job guarantees.

Fiat to bid for Opel

Fiat to bid for Opel
05-05-2009

The chief executive of the Italian car manufacturer, Fiat, is to outline plans later today for a possible take-over of the rival carmaker, Opel, in a move intended to create a new European car giant.

The Fiat chief, Sergio Marchionne, is expected to propose to the German government a merger between his firm -- which is buying a stake in the US company, Chrysler -- and Opel, the German arm of General Motors

Forecast of higher mainland growth

Forecast of higher mainland growth
05-05-2009

A mainland government think-tank says the country's economy will grow by 7 percent in the second quarter of the year.

If that's correct, it would mean the economy had hit the bottom in the first quarter which grew at 6.1 percent - the slowest rate in ten years.

The State Information Centre predicted investments in fixed assets, such as factories and construction, would increase 27.6 percent from a year ago.

The projections suggest that the government's 4 trillion yuan spending package announced in last November was taking effect.

Obama seeks to close tax loophole

Obama seeks to close tax loophole
05-05-2009

President Obama has been giving details of his proposed changes to the US tax system. In one of the more contentious measures, Mr Obama wants to scrap provisions that allow companies to delay paying tax on profits made and reinvested abroad.

He said the practice deprived the US government of much-needed revenue, and also served as an incentive to companies to move jobs away from the US. However, the US Chamber of Commerce has opposed the measures, which, opponents argue, would raise corporate taxes to uncompetitive levels.

Berkshire operating profit down

Berkshire operating profit down
03-05-2009

Warren Buffett told a record crowd at a somber annual meeting of his Berkshire Hathaway Inc that first-quarter operating profit fell and the company's book value declined 6 percent, as the recession weighed on many of the company's businesses and investments.

Operating profit fell about 12 percent from a year earlier to $1.7 billion, as most of Berkshire's businesses were "basically down," Buffett told an estimated 35,000 people at the meeting in downtown Omaha.

The decline in book value results in part from falling stock prices and higher losses on derivatives contracts, and comes on top of a 9.6 percent decline last year, the biggest drop since Buffett began running the company in 1965.

Morales nationalises BP subsidiary

Morales nationalises BP subsidiary
02-05-2009

President Evo Morales of Bolivia has announced the take-over of a subsidiary of the British oil company, BP, as part of his continuing nationalisation campaign.

He told cheering May Day crowds in the capital, La Paz, that he had ordered the armed forces and the state oil company to take control of the aviation fuel supplier, AirBP.

Bankrupt Chrysler to partner with Fiat

Bankrupt Chrysler to partner with Fiat
01-05-2009

President Obama has announced that the car company Chrysler is applying for bankruptcy so it will be protected from creditors while it restructures.

Mr Obama said it would form a partnership with the Italian manufacturer, Fiat, in an effort to save it from collapse.

He said the process was intended to put one of America's top three car companies back on the path to success.

6 US banks will need additional capital

6 US banks will need additional capital
30-04-2009

Bloomberg says at least six of the 19 largest US banks will need additional capital. This is according to the early results of a so-called "stress test" by Washington. Final results of the test - which determines the financial health of banks - will be released next week.

Cathay Pacific accused of price-fixing

Cathay Pacific accused of price-fixing
30-04-2009

Australia's competition watchdog has accused Cathay Pacific Airways of price-fixing air freight.

The Competition and Consumer Commission said places where the price-fixing agreements were reached included Hong Kong, Singapore, Japan, Indonesia and India.

It said it would seek penalty against the carrier. A preliminary hearing will be held on 28th May.

Cathay was accused by New Zealand of being part of a cartel to set air cargo prices four months ago.

China investors can buy Taiwan stocks

China investors can buy Taiwan stocks
30-04-2009

Taiwan says it'll allow institutional investors on the mainland to buy stocks listed on the island.

Taiwan's market regulator said the move was expected to inject more funds into the local stocks.

Analysts estimate the latest move will initially attract at least US$660 million in new funds.

The announcement is the latest of a series of measures designed to boost business ties across the Taiwan Strait.

Two foreign investors sell ICBC stakes

Two foreign investors sell ICBC stakes
28-04-2009

Allianz and American Express have sold half of their stakes in Industrial and Commercial Bank of China for US$1.9 billion.

Other foreign investors have sold part or even their entire stake in mainland lenders this year in a bid to shore up capital.

The Hong Kong-listed ICBC shares rose 2.5 percent today to $4.12. The bank's share slumped 6 percent yesterday.

CLP says China's economy stabilizing

CLP says China's economy stabilizing
28-04-2009

CLP says the decline in electricity demand on the mainland has bottomed out, as the country's economy stabilizes amid the global downturn.

Its Chief Executive Officer, Andrew Brandler, made the comment after its annual general meeting.

Mr Brandler said one of the company's major focuses is to further develop renewable energy on the mainland.

The firm's revenue is expected to fall by 30 percent after last year's scheme of control agreement with the government that lowered its permitted profits.

Bank of China's profit falls

Bank of China's profit falls
2009-04-29 HKT 00:23

Bank of China has posted a 14-percent fall in profit for the first quarter to 18.6 billion yuan.

It set aside more money - US$380 million - for potential losses from its US mortgage investments.

The bank still holds US$2.2 billion worth of US subprime mortgage investments.

For its Hong Kong unit, first-quarter profit fell 17.5 percent to just under HK$6 billion.

The bank said its exposure to Fannie Mae and Freddie Mac was valued at HK$4.3 billion.

US trade protectionism growing: China

US trade protectionism growing: China
29-04-2009

Beijing says US trade protectionism against China is growing - putting bilateral economic ties to the test.

In an opinion piece for the Asian Wall Street Journal, the Commerce Minister, Chen De-ming, said Beijing is not aiming for a trade surplus with the US.

America's biggest trade deficit is with China reaching a high of US$266 billion last year from US$256 billion the year before.

Mr Chen also said American industries had petitioned the US government for anti-dumping investigations.

And they had also asked for investigations under World Trade Organisation rules that could lead to restrictions of imports of Chinese products.

American business groups say China's exporters have an unfair advantage from an artificially undervalued Chinese currency.

Mr Chen called for China and the US to mutually open their markets and to expand trade and investment.

GM to cut 21,000 jobs

GM to cut 21,000 jobs
28-04-2009

The big American car company General Motors is to cut 21,000 US jobs and phase out its Pontiac brand, as it aims to meet a June 1 deadline to revamp its business. GM has to complete its restructuring by then to gain the government loans it needs to avoid bankruptcy protection.

After shedding Pontiac by the end of 2010, GM will focus on its Chevrolet, Cadillac, Buick and GMC brands. The firm also said it hoped to halve its debts by persuading bondholders to swap US$27 billion of bonds for shares.

GM also wants the US government to swap half its current loans for a 50 percent stake. The government has so far given GM more than $15 billion in loans.

GM has already cut 10,000 US jobs this year and following the latest cuts its American workforce will be reduced to 40,000. Like rivals Ford and Chrysler, GM has seen sales fall sharply in its home market in recent years, a decline that has intensified as the recession has continued.

EU plans major reform of finance sector

EU plans major reform of finance sector
26-04-2009

The European Union plans ambitious reform of the financial sector this year to address the failings that led to the current global crisis, EU Economic Affairs Commissioner Joaquin Almunia said.

He told the spring meeting of the International Monetary Fund's main steering committee that the crisis had exposed unacceptable weaknesses in the governance of international and European financial markets.

He said the reforms would aim to give the EU a supervisory framework to detect potential risks early and deal with them before they had an impact.

German banks in 'US$1 trillion exposure'

German banks in 'US$1 trillion exposure'
26-04-2009

Germany's banking system is exposed to more than US$1 trillion worth of "toxic" or risky assets, news media in Europe's largest economy said, citing a confidential financial watchdog report.

The publication of the report was condemned by the watchdog, which said it is filing a formal complaint and warned against any "erroneous interpretation" as the German government ponders action to prop up its troubled economy ahead of September general elections.

Senior government ministers have held talks on a plan to help lenders clean up their balance sheets, possibly by allowing them to park difficult loans in their own individual mini "bad banks".

UK's richest lose billions

UK's richest lose billions
26-04-2009

The economic downturn has wiped billions of dollars off the fortunes of some of the richest people in Britain, including Lakshmi Mittal and Roman Abramovich, according to a survey.

The annual Sunday Times Rich List, which features the thousand wealthiest people based in Britain, found they had collectively lost 155 billion pounds, or US$ 228 billion, in the last year.

Indian-born steel tycoon Mr Mittal tops the list for the fifth year running but he and his family's wealth has fallen to 10.8 billion pounds from last year's 27.7 billion, a massive 60 percent drop.


Mr Abramovich, the Russian oligarch who owns Chelsea Football Club, is at number two and is worth seven billion pounds, down from 11.7 billion last year.

IMF agrees on bank clean-up

IMF agrees on bank clean-up
26-04-2009

Finance ministers from rich and developing countries have agreed on the need for an urgent clean-up of banking systems in developed countries, if there's to be an economic recovery worldwide.

The agreement came at a meeting of the International Monetary Fund and the World Bank in Washington, where the IMF director, Dominique Strauss-Kahn, said there'd been progress on the issue, but it had been too slow.

The meeting also heard calls for more help for African countries feeling the effects of the global crisis.

The Tanzanian finance minister said rich countries should use part of their stimulus resources to help poorer ones.

Mainland, Taiwan sign financial deal

Mainland, Taiwan sign financial deal
26-04-2009

Envoys from the mainland and Taiwan have signed a series of landmark agreements laying the groundwork for a flood of financial services investment to flow across the Taiwan Strait.

The centerpiece of the latest round of cross-strait negotiations - the third in a year - is an agreement setting up a regulatory framework for financial services firms on both sides of the Taiwan Strait to invest and do business in each others' markets.

The two sides also agreed to gradually establish a clearing system between the Taiwan dollar and the yuan; and increase the number of direct cross straits flights from 108 to 270 a week.

The mainland's top Taiwan negotiator, Chen Yunlin, also agreed to set up a comunication mechanism between the two sides, during talks in Nanjing with his Taiwanese counterpart Chiang Pin-Kung.

The negotiators also agreed to crack down on major crimes such as kidnapping and human trafficking as well as economic crimes involving money laundering and fraud.

Australia approves China's buyout deal

Australia approves China's buyout deal
23-04-2009

Australia has approved a revised takeover bid from the mainland firm, Minmetals, for Oz Minerals. The government scuttled the original bid on national security grounds. The revised deal excluded a mine which is close to a military rocket testing range. Cash-strapped Oz Minerals welcomed the approval saying the revised US$850-million offer would allow it to pay off its debt. The deal is still subject to a shareholder vote and regulatory approvals from Beijing.

Morgan Stanley raises China GDP forecast

Morgan Stanley raises China GDP forecast
23-04-2009

Morgan Stanley has raised its growth forecast for China from 5.5 percent to 7 percent. Its economists believe the government's stimulus measures have effectively prevented a potentially more severe slowdown in the first quarter. The mainland economy expanded 6.1 percent in that period, the slowest pace in ten years. Goldman Sachs, Barclays and UBS have also recently raised their China forecasts.

Credit Suisse swings back to profit

Credit Suisse swings back to profit
23-04-2009

The Swiss banking giant, Credit Suisse, has swung back into profit after two consecutive quarters of massive losses. It earned US$1.7-billion in the first quarter of the year. The bank's Chief Executive, Brady Dougan, said the improvement showed the impact of measures taken to deal with the global financial crisis, including cutting costs and raising capital.

Microsoft reports drop in sales

Microsoft reports drop in sales
24-04-2009

The American computer software maker, Microsoft, has reported its first drop in sales since the company went public 23 years ago. First quarter sales this year were US$13.6 billion, down 6 percent compared with the same period last year. The firm's profits, fell by 32 percent to US$2.9 billion. The company warned that weakness in the computer market would continue at least for the next few months.

HSBC shuts stock research unit in Japan

HSBC shuts stock research unit in Japan
24-04-2009

HSBC will shut its stock-research and trading departments in Japan. The bank said its equity operations would be moved to Hong Kong. Up to 55 jobs will be cut in Japan. The bank sacked 100 people in Hong Kong on Tuesday.

2008 global music down by 8%

2008 global music down by 8%
22-04-2009

Global music sales fell by more than 8% in 2008 to $US18.4 billion. The lower numbers were led by a sharp fall in the United States, according to the world trade body IFPI. The music industry has seen sales tumble in recent years.

It's due to two main factors:

1) consumers are moving to cheaper digital formats such as MP3s... and

2) rampant piracy. Digital sales are growing but they have failed to make up for the drop-off of CD sales. Overall, US sales fell 19% while Europe was down 6%. Asia was the one bright spot with sales up 1%.

Geithner says bank lending constrained

Geithner says bank lending constrained
22-04-2009

American Treasury Secretary, Timothy Geithner. Photo: Reuters.
The American Treasury Secretary, Timothy Geithner, says lending by banks is still being constrained by difficulties in putting a value on their toxic assets. In testimony to a congressional panel, Mr Geithner said that uncertainty about the health of the banks and worries about the broader economy had sharply reduced lending.

IMF warns of $US4t global losses

IMF warns of $US4t global losses
22-04-2009

Governments across the world have been told by the International Monetary Fund that they must take further decisive action to help restore the global financial system to stability. In a fresh estimate on the scale of the problem, the IMF says total global losses on problem assets could total four trillion US dollars.

UK economy to shrink by 3.5 per cent

UK economy to shrink by 3.5 per cent
23-04-2009

The British Chancellor of the Exchequer, Alistair Darling, has delivered his last scheduled budget before the government has to call a general election. Mr Darling promised to introduce measures to take Britain through the worst global economic downturn for 60 years. He told parliament that Britain had been badly hit by the global downturn and said the economy would shrink by 3.5 per cent this year -- its worst performance since the Second World War.

IMF downgrades world economic forecast

IMF downgrades world economic forecast
23-04-2009

The International Monetary Fund has once again downgraded its forecast for the world economy. It now expects a contraction of 1.3 percent this year. The IMF blames what it calls the deepening financial hole caused by losses from banks and other financial institutions as a result of bad loans. It says these are likely to add up to four trillion US dollars in total. The forecast for next year is for weak growth of just 1.9 per cent.

Top Freddie Mac executive found dead

Top Freddie Mac executive found dead
23-04-2009

The acting chief financial officer of the troubled American mortgage giant, Freddie Mac, has been found dead at his home. David Kellerman, had worked for Freddie Mac for more than 16 years. He became finance officer in September, after the government had bailed out the company. Reports say there was no foul play, and that he committed suicide.

China's economy show signs of recovery

China's economy show signs of recovery
23-04-2009

A deputy governor of the People's Bank of China, Yi Gang, says the government's 4-trillion yuan stimulus package has already led to signs of economic recovery. The economy grew 6.1 percent in the first quarter of the year - the slowest pace in ten years.

Bank lending grew rapidly during the first three months to support the economy. But Mr Yi said this lending would now begin to stabilise.

China aims to invest more in Europe

China aims to invest more in Europe
21-04-2009

The China Investment Corporation is seeking to expand its operations this year, particularly in Europe.

It aims to include countries it previously avoided because of limits they had set on China's investments.

Lou Jiwei, the chief of the sovereign fund, said resistance from some Western governments had contributed to CIC's reluctance to deploy its capital. As a result, it had been shielded from sharp market losses.

But Mr Lou said the environment had changed this year.