Established: 1997
US$ Billion: $347.1
Origin: Non-commodity
Entity Structure: Corporate
Transparency Rating: 2
Summary:
The State Administration of Foreign Exchange (SAFE) is responsible for managing China's foreign exchange reserves. SAFE has a subsidiary in Hong Kong called the SAFE Investment Company which has made purchases in foreign equity investments. The SAFE Investment Company is organized as a privately held firm; however, SAFE officials serve on its board.
At year end of 2007, the SAFE held around $18.9 billion in foreign securities and $220.6 billion in foreign debt securities. This totals $239.5 billion dollars in SAFE's foreign investment portfolio ending year 2007. In addition, another $107.6 billion is invested directly abroad which would bring the total to $347.1 billion in foreign non-reserve assets.
Strategy & Objectives:
They have made significant investments in the UK Equity Market. Some top holdings include: Royal Dutch Shell, Rio Tinto, BG Group, Tesco, BHP Billiton, and Barclays. This totals around US$ 6 billion in equity investments in the FTSE 100.
4/24/2009
China's forex investment profitable: state media
According to Xinhua, "China said Friday that its investments of foreign exchange reserves remained profitable last year despite the global financial crisis that sent financial assets shrinking in value, dispelling concerns of huge losses with such investments.
'We managed to get some proceeds from managing the country's foreign exchange reserves last year, while at the same time maintaining the safety and liquidity of the assets,' Hu Xiaolian, head of the State Administration of Foreign Exchange (SAFE), told Xinhua in an interview.
China's overseas earnings reached 82.5 billion U.S. dollars in 2008, up 8 percent from a year earlier, according to the country's balance of payments statistics released Friday by the SAFE. Hu said a considerable proportion of such earnings were from investments of forex reserves, without revealing specific figures."
read more: Xinhua
12/30/2008
China forex watchdog burnt by WaMu collapse
According to Reuters, "China's foreign exchange watchdog, the State Administration of Foreign Exchange, will cut back on overseas equity buys next year after suffering major losses on the collapse of U.S. lender Washington Mutual, according to sources. Earlier this year, SAFE, which controls around $2 trillion of China's foreign reserves, agreed to invest up to $2.5 billion in fund of U.S. private equity giant TPG TPG.UL -- its first foray into a foreign private equity fund, people close to the situation told Reuters. In April, TPG, one of the world's largest private equity firms, led a $7 billion investment in Washington Mutual to help the troubled lender boost its capital. TPG put money into WaMu through several of its funds, including one SAFE invested in, said the sources who declined to be identified due to the sensitive nature of the deal."
read more: Reuters
6/10/2008
SAFE invests $2.5 Billion in TPG Fund
Private equity seems to be a growing conduit for investments for sovereign wealth. According to the Financial Times, "China's State Administration of Foreign Exchange has agreed to invest more than $2.5bn in the latest TPG fund, in what could be the largest commitment ever made to a private equity firm, people familiar with the matter say."
read more: Financial Times
4/10/2008
Total CEO: Chinese sovereign fund, SAFE holds around 1.3 percent
Dow Jones writes that, "Total SA Chief Executive Christophe de Margerie Thursday said the stake taken in the company by a Chinese sovereign fund is around 1.3%." Is SAFE trying to establish itself as a sovereign investor?
read more: Dow Jones
WebsitesState Administration of Foreign Exchange Major Direct Foreign Investments (Public)
| Company | Country | Industry | % Ownership | Comments |
| Total | France | Oil | ~1.3% |
|
| Aviva | United Kingdom |
| 0.97% |
|
| BP | United Kingdom | Oil | ~1% |
|
| Royal Dutch Shell Plc | United Kingdom | Oil | 0.9% |
|
| BG Group | United Kingdom |
| 0.7% |
|
|
Major Direct Foreign Investments (Private)
| Company | Country | Type | % Ownership | Comments |
|
1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.
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