Tian Bai

I’m cheerfully surprised to know that our sovereign-wealth fund, China Investment Corp (CIC), is going to pay $5 billion for as much as 9.9% of the Wall Street giant, Morgan Stanley.  This was announced together with Morgan Stanley’s $9.4 billion write-down for its fiscal fourth quarter.

It’s really a wise move. The Subprime Crisis introduces this golden opportunity that many foreign banks/funds are significantly under-valued and need cash injection.  We should just widely invest on those banks/funds now.  It’s also a firm move, with respect that CIC has been extensively snickered for the loss on Blackstone.  I admire the determination.

It is said that "for the first time, Chinese companies and the government bought more overseas than foreign buyers have invested in China", which is good news considering the piling up foreign cash on China’s balance sheet.