May 20, 2017 / 2:30 AM / 8 months ago

China's CIC plans more direct investments in U.S. - Xinhua

SHANGHAI, May 20 (Reuters) - China’s sovereign wealth fund has opened a New York office and plans to make more direct investments in the United States, with its head of the fund saying foreign investment can help advance U.S. President Donald Trump’s economic agenda.

At an opening ceremony for China Investment Corporation’s (CIC) New York office on Friday, fund president Tu Guangshao was optimistic China and the United States would expand cooperation on investment “as the two countries are in mutual need of closer bilateral ties”, according to the Chinese state news agency Xinhua.

Tu said the opening of CIC offices abroad was a strategic decision and the fund planned to make more direct investments in the United States, but he did not give details.

He noted Trump’s planned tax reform, deregulation and infrastructure plans could boost corporate spending, capacity utilisation and labor productivity.

“As an effective source of funding for these policies, foreign investment will serve as an important driver for the U.S. economy,” Tu was quoted as saying.

According to Tu, U.S. holdings currently account for approximately 40 percent of the fund’s overseas portfolio.

CIC, headquartered in Beijing, started with initial funding of $200 billion, and by the end of 2015 its total assets had surpassed $810 billion, Xinhua reported. (Reporting by John Ruwitch; Editing by Simon Cameron-Moore)

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