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Business Times
25-05-2025
- Business
- Business Times
China, Indonesia sovereign wealth funds boost investment ties
China and Indonesia agreed to step up ties between their economies during Premier Li Qiang's visit to Jakarta, including one on investment involving their sovereign wealth funds. Both their central banks signed a memorandum of understanding (MOU) on a framework for bilateral transactions in local currencies during a ceremony witnessed by Li and President Prabowo Subianto on Sunday (May 25). The two countries will boost cooperation on tourism and agricultural exports, while wealth funds China Investment Corporation and Danantara Indonesia entered an investment agreement. No details were provided. Li's visit to Jakarta comes as China seeks to strengthen relations with South-east Asia amid intensifying trade tensions with Washington. It follows an inaugural 2+2 dialogue last month between Chinese and Indonesian foreign and defence ministers, talks that were widely seen as part of Beijing's strategy to court the wider regional bloc. Li is headed to a South-east Asian leaders summit in Malaysia this week. Trade and investment from Chinese companies and other multinationals into Asean have soared in recent years as US tariffs on China drove a relocation in manufacturing. Chinese and Indonesian officials also signed MOUs on economic, industry and supply chain development policies and agreed to further work on health and media sectors. Prabowo has visited China twice since winning the presidency – in April and November last year – with one of those trips resulting in more than US$10 billion in business deals. China is Indonesia's largest trading partner and a key investor in the country's commodity and infrastructure sectors, including the Jakarta-Bandung high-speed rail and nickel processing. BLOOMBERG
Bloomberg
25-05-2025
- Business
- Bloomberg
China, Indonesia Sovereign Wealth Funds Boost Investment Ties
China and Indonesia agreed to step up ties between their economies during Premier Li Qiang's visit to Jakarta, including one on investment involving their sovereign wealth funds. Both their central banks signed a MOU on a framework for bilateral transactions in local currencies during a ceremony witnessed by Li and President Prabowo Subianto on Sunday. The two countries will boost cooperation on tourism and agricultural exports, while wealth funds China Investment Corporation and Danantara Indonesia entered an investment agreement. No details were provided.
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Business Standard
23-04-2025
- Business
- Business Standard
Chinese state funds pull back from US private equity amid trade war
Chinese state-backed investment funds are halting new investments in US private equity firms in response to growing tensions triggred by President Donald Trump's intensifying trade war, The Financial Times reported on Monday. Chinese state-backed funds have paused investments in US-based private capital firms in recent weeks due to pressure from the Chinese government. Some Chinese funds are attempting to avoid exposure to US-based companies altogether, even when investments are made through buyout groups headquartered outside the United States, the report said, citing seven private equity executives familiar with the matter. This retreat comes amid the mounting trade war between the two nations, with Washington slapping duties of up to 145 per cent on Chinese goods and Beijing responding with tariffs of up to 125 per cent on American exports. The latest escalation has cast a shadow over global capital flows, particularly in the private equity space. Chinese wealth funds invested billions into US firms Chinese sovereign wealth funds, including China Investment Corporation (CIC) and the State Administration of Foreign Exchange (SAFE), have historically been key players in US private equity, investing billions into leading firms such as Blackstone, Carlyle Group, TPG, Vista Equity Partners, and Thoma Bravo. These investments played a crucial role in propelling private equity into a $4.7 trillion global industry. CIC, the country's largest sovereign wealth fund, had already been slowing its investments in US private equity in recent years, choosing to diversify its portfolio to other international markets. As direct investments by Chinese state entities face growing scrutiny in the West, indirect investments via private equity funds have remained a viable route for Beijing to maintain exposure to the US and European economies. However, the current geopolitical climate seems to be prompting a rethink. ALSO READ | These geopolitical tensions have prompted not only China but also Canadian and European pension funds to reassess their position as trade relations with the US remain unpredictable
Zawya
21-04-2025
- Business
- Zawya
China retreats from US private equity investments, FT reports
China's state-backed funds are pulling back from investing in the funds of U.S.-headquartered private capital firms amid an escalating trade war between the world's two biggest economies, the Financial Times reported on Monday. Some of the Chinese funds are also seeking to be excluded from investments in U.S. companies made by private equity firms based elsewhere, the report, which cited seven private equity executives with knowledge of the matter, said. Multiple buyout executives will not be making new fund commitments to U.S firms, while some are backing out of planned allocations, in cases where they had not yet made a final commitment, the report added. Their stance comes at a time when U.S. President Donald Trump has singled out China in his trade war by imposing 145% tariffs on Chinese goods, with Beijing retaliating with 125% levies on American products. Three of FT's unnamed sources confirmed the move comes as response to the pressure of the Chinese government. China Investment Corporation (CIC), which set up a private equity "partnership fund" with Goldman Sachs in Trump's first term, is among the several Chinese funds that has stepped back, the report added. Global Infrastructure Partners, which was bought by BlackRock last year, Thoma Bravo, Vista Equity Partners, Carlyle and Blackstone were among the U.S firms that have received backing from Chinese state-backed investors, the report said. (Reporting by Sherin Sunny in Bengaluru; Editing by Leroy Leo)
Al Arabiya
21-04-2025
- Business
- Al Arabiya
China retreats from US private equity investments, FT reports
China's state-backed funds are pulling back from investing in the funds of US-headquartered private capital firms amid an escalating trade war between the world's two biggest economies, the Financial Times reported on Monday. Some of the Chinese funds are also seeking to be excluded from investments in US companies made by private equity firms based elsewhere, the report, which cited seven private equity executives with knowledge of the matter, said. Multiple buyout executives will not be making new fund commitments to US firms, while some are backing out of planned allocations, in cases where they had not yet made a final commitment, the report added. Their stance comes at a time when US President Donald Trump has singled out China in his trade war by imposing 145 percent tariffs on Chinese goods, with Beijing retaliating with 125 percent levies on American products. Three of FT's unnamed sources confirmed the move comes as response to the pressure of the Chinese government. China Investment Corporation (CIC), which set up a private equity 'partnership fund' with Goldman Sachs in Trump's first term, is among the several Chinese funds that has stepped back, the report added. Global Infrastructure Partners, which was bought by BlackRock last year, Thoma Bravo, Vista Equity Partners, Carlyle and Blackstone were among the US firms that have received backing from Chinese state-backed investors, the report said.
