China's $200bn sovereign wealth fund, which has made a series of loss-making investments in Western financial institutions since last year, could have as much as $5.4bn frozen in a failed US money market fund account.
A subsidiary of China Investment Corp was the biggest institutional investor in the $62bn Reserve Primary Fund, the first money market fund in 14 years to see its net asset value fall below $1 last month, according to US regulatory filings reported by agencies.
Stable Investment Corp, which is registered at the same address as the CIC office in Beijing and shares employees with the fund according to the reports, held 11.1 per cent of Reserve Primary's shares, or around $5.4bn worth, at the start of September.
