Fletcher in the News

SWFI Senior Fellow Patrick Schena on China’s New Sovereign Fund Chief

China’s New Sovereign Fund Chief Under Pressure to Boost Returns

Ding Xuedong takes over as head of China’s wealth fund facing three challenges: boosting returns, finding new capital and dealing with rivalry from the manager of the nation’s foreign-exchange reserves.

His appointment, announced July 5, ends months of speculation over who would take charge at China Investment Corp. after Lou Jiwei was named Finance Minister in new Premier Li Keqiang’s government in March. Ding, 53, a former deputy finance minister, will move from the State Council where he was a deputy secretary-general….

… The agency is studying the possibility of investing a portion of its reserves in U.S. property after noticing signs of a recovery, two people with direct knowledge of the situation said in May.

The two Chinese government asset managers “share a healthy rivalry,” Patrick Schena, co-head of the Sovereign Wealth Fund Initiative at Tufts University in Medford, Massachusetts, said in an e-mail. “Perhaps a more important question is: if/how this rivalry may affect investment decision-making at CIC in the future.”

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