China’s main sovereign wealth fund, China Investment Corporation (CIC), is planning to sell private equity investments worth $1 billion in the U.S. through the secondary market, according to people familiar with the matter. (Reuters).
This decision comes as Beijing directs its state-backed funds to avoid putting money into U.S. financial firms, due to growing political and trade tensions with Washington. The move follows recent tariff hikes by both countries — the U.S. raised duties on Chinese imports up to 145%, and China responded with its own tariffs as high as 125%.
Even private equity deals managed by firms outside the U.S. are being avoided if they have American links. This shows a clear shift in China’s investment strategy, signaling that the government wants to reduce financial exposure to the U.S.
Instead of the U.S., Chinese funds are now focusing on other markets, including the UK, Saudi Arabia, India and Japan, as safer investment options.
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