China’s recent $250 million decision could help Latin America-related exchange traded funds (ETFs).
China Investment Corp. (CIC) has decided to inject $200 billion into their sovereign wealth funds, and $250 million of that is going toward emerging markets, reports Irwin Greenstein for Seeking Alpha. It turns out China must diverge from the falling dollar and tap into greater reserves such as Latin America, which can generate the energy necessary for China’s development.
CIC is responsible for managing part of China’s foreign exchange reserves, and it’s the sixth-largest sovereign wealth fund in the world. It began operations on Sept. 29, 2007. Sovereign wealth funds are huge investment organizations owned by central banks and are accountable to no one.
CIC’s emerging markets plan has two focal points: