Chinese wealth fund scraps US$1 billion private equity sale

Chinese sovereign investor China Investment Corporation has scrapped its plan to sell about US$1 billion (HK$7.8 billion) worth of it private equity fund stakes on the secondary market, Bloomberg reported on Tuesday, citing sources.

The sovereign wealth fund had earlier this year explored offloading holdings in funds managed by global buyout firms including Carlyle, KKR & Co, and TPG, in a move seen as part of its effort to trim exposure to US assets amid prolonged geopolitical tensions.

CIC has informed both potential buyers and fund managers that it will no longer proceed with the sale, according to the report. The reversal is considered unusual, as institutional investors rarely halt a process once it reaches that stage, the report added.

Sources told Bloomberg that CIC was also wary of being perceived as being in retreat.

STAFF REPORTER