China Investment Corp to restructure, split from Huijin -report

SHANGHAI, Sept 1 Wed Aug 31, 2011 9:17pm EDT

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SHANGHAI, Sept 1 (Reuters) - Beijing plans to restructure China Investment Corporation (CIC) , including spinning off the sovereign wealth fund's domestic investment arm, Central Huijin Investment Ltd, China Business News reported on Thursday, without citing sources.

The proposal is said to have been submitted to China's State Council by a few central government departments, including the Ministry of Finance (MOF).

The government first plans to set up a new entity, CIC International, which will concentrate on the fund's overseas investments.

Huijin's accounts, which are currently included in CIC's books, will be reported separately, China Business News said.

CIC will retain a controlling stake in both Huijin and CIC International.

The central bank will directly inject some 100 billion yuan ($15.68 billion) of fresh funds into CIC International but the exact size of the capital injection has not yet been confirmed, the newspaper said.

Under the plan, the MOF and the central bank will also become direct stakeholders in CIC International. ($1 = 6.378 yuan) (Reporting by Carrie Ho and Kazunori Takada; Editing by Jonathan Hopfner)

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