CIC Suffers Huge Loss from Holding of Blackstone

BEIJING, Feb 18, 2008 (SinoCast via COMTEX) -- BX | news | PowerRating | PR Charts -- Blackstone Group L.P. (NYSE: BX), the first investment object of China Investment Corporation (CIC), saw its stock price fall to new low to USD 17.59 a share on February 12, driving the Chinese investor to suffer huge loss.

CIC, the sovereign wealth fund in China responsible for managing part of China's foreign exchange reserves, on May 2007 purchased a nearly 10% stake in the New York-listed company with about USD 3 billion in total or USD 29.605 a share.

However, stock price of Blackstone, the second largest private equity firm in the US, had been dropping after its listing, which shrank investment of CIC. The Chinese investor lost up to USD 1.218 billion on February 14, equivalent to about CNY 8.7 billion.

Founded in 1985, the US-based private equity company managed assets of up to USD 88.4 billion. Its average annual growth of capital has reached as much as 41.1% since 2001.

From homeway.com, Page 1, Friday, February 15, 2008 info@SinoCast.Com

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