Sovereign Wealth Funds Investing in China
This posting was written by Matthew Pitman.
In a potential sign that China is willing to further open its doors to foreign investment, Qatar's sovereign wealth fund has applied to invest up to $5 billion in Chinese stocks and bonds which would make it the biggest investor in China's capital markets. The quota for international investment is limited to $1 billion but with the increase in demand to invest in this, the nation at the forefront of the emerging markets, there seems to be a real possibility that the limit of $1 billion may be lifted or certainly increased for Qatar and other global sovereign wealth funds.
This may be the initial stage of sovereign wealth funds, not just in the Middle East but globally taking their money to the BRIC countries. Reed Smith has a Sovereign Wealth Funds group that advises some of the largest sovereign wealth funds in the world, including the China Investment Corporation and a major Middle East-based sovereign wealth fund, in connection with corporate governance, tax and investment matters. As one of the largest law firms in the world, our global platform enables us to cater for the diverse needs of our sovereign client base. We are the only international law firm with top 20 practices in the Middle East, Europe, the USA and Asia, enabling us to deliver high quality advice and service on a global basis.
Matthew Pitman is a Senior Associate in the Investment Funds Group. His practice covers a wide range of transactional and investment work, including fund formation, indirect investments, advising on investment management issues, joint ventures and managed accounts. He has advised in connection with the establishment of a number of investment vehicles and assisted institutional investors around the world (including major pension funds, sovereign wealth funds and family offices) with over £10 billion of investments. His experience includes pooled fund vehicles as well as innovative seeding deals, fund replication programs and managed accounts (for both liquid and illiquid assets).