September 29th, 2007 06:13 EST
State forex investment company debuts
The Ministry of Finance will keep pouring forex bought with returns from special treasury bonds it issues into the new company, the sources said.
So far, the ministry has issued more than 700 billion yuan (93.3 billion U.S. dollars) of special treasury bonds, with 600 billion yuan to the central bank and 100 billion yuan targeting the general public. It will issue another 100 billion yuan of treasury bonds by the end of this year.
In total, China's legislature approved the special issuance of 1.55 trillion yuan treasury bonds for the new investment company in June.
"The CIC's founding marked a key measure to deepen the reform of China's financial system," said Lou Jiwei, the company's newly-appointed board chairman, who is also deputy secretary-general of the State Council.
Other board members include two executive directors Gao Xiqing and Zhang Hongli, five non-executive directors -- Zhang Xiaoqiang, Li Yong, Fu Ziying, Liu Shiyu and Hu Xiaolian, two independent directors Liu Zhongli and Wang Chunzheng, and one director to be elected from the company's employees.
Gao Xiqing is now vice chairman of the National Council for the Social Security Fund. Zhang Hongli and Li Yong are vice finance ministers. Zhang Xiaoqiang and Wang Chunzheng are vice ministers of the National Development and Reform Commission (NDRC). Fu Ziying is assistant minister of commerce, Liu Shiyu central bank vice governor, Hu Xiaolian head of the State Administration of Foreign Exchange (SAFE) and Liu Zhongli former finance minister.
Gao Xiqing was also appointed the company's general manager and Zhang Hongli, Yang Qingwei, Xie Ping and Wang Jianxi were appointed deputy general managers.
Yang Qingwei is currently department head of fixed assets investment with the NDRC. Xie Ping is now the general manager of the Central Huijin Investment Corporation and Wang Jianxi a vice board chairman of the Central Huijin.
Hu Huaibang, commissioner of discipline inspection with the China Banking Regulatory Commission, took the post as chief supervisor.
In May, the new company, still in preparation, made its first investment in non-voting shares, valued at 3 billion U.S. dollars, in the U.S. private equity firm, the Blackstone Group.
China's forex reserve had reached 1.33 trillion U.S. dollars by the end of June.
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