China Buys Stakes in Coke, Apple

But avoids major US holdings in hunt for healthy returns

By Rob Quinn, Newser Staff

Posted Feb 9, 2010 4:10 AM CST

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China Buys Stakes in Coke, Apple — CIC said in August it lost 2.1% on its global portfolio in 2008, which compares favorably to the huge losses suffered by similar investment funds. (Getty Images)

China's colossal sovereign wealth fund has steered clear of buying large chunks of US firms as it seeks better returns on its portion of the country's $2.4 trillion in foreign reserves. An SEC filing released yesterday shows that the $300 billion fund holds a relatively low $9.63 billion in equity US-listed companies, AP reports.

The incomplete filing reveals small, previously unknown China Investment Corp. stakes in American firms, including Coca-Cola, Apple and Goodyear. The fund also has a $1.7 billion stake in Morgan Stanley, but it usually shuns large, high-profile investments in the US, preferring to invest in commodity stocks that will benefit from Chinese demand for raw materials. The largest investment listed was $3.5 billion in Teck Resouces, a Canadian mining firm with operations in South America.
(More China stories.)

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