I dont have an issue with sovereign funds, after all, we do have public sector investments already. But this is the amusing bit.
The head of China’s new sovereign investment fund on Tuesday said the body would follow strictly “commercial goals” free of political motivation, in what appeared to be a move to counter western concerns about the potential influence of such funds.
China’s sovereign fund, which initially has $200bn (€141bn, £98bn) under management, was launched two weeks ago in an effort to squeeze greater returns from the country’s bulging foreign exchange reserves. It coincided with a push, notably in Europe, to demand greater transparency for sovereign funds amid fears they could mix investment goals with political agendas.
Given the fact that all in China is either directly or indirectly controlled by the Communist Party of China, just how will he guarantee that the shareholding or investments will be free of political motivation? Its just plain and simply silly to claim something like this. When they cant keep their own legal system free of political motivation, they are claiming that their foreign investments will?
All this to be taken with a grain of piquant salt!!!
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