China SWF to prop up equities market

The emergence of sovereign wealth funds on the global stage has sparked a lot of fear. Here's one way to view them: a good source of added liquidity at a decent time. I doubt they'll be bailing out the credit markets anytime soon--too bad--but some funds seem poised to make a move in equities. China Investment Corp., which manages $200 billion, will soon start making stock investments, Forbes reports. They have already gotten their feet wet. The fund took big losses on its $3 billion investment in the Blackstone Group and a $5 billion investment in Morgan Stanley. Not surprisingly, CIC is expected to invest via actively managed funds. It may spread up to $90 billion on mainly blue-chip stocks around the world.  

For more:
- here's the Forbes article

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