China sovereign fund exits Blackstone investment

From Reuters - March 13, 2018

HONG KONG (Reuters) - Chinas sovereign wealth fund China Investment Corp (CIC) has sold its equity holding in Blackstone Group LP (BX.N), the U.S. private equity firm said in a filing, exiting from an 11-year old investment.

The original agreement with Beijing Wonderful Investments - the legal entity set up by CIC to invest in Blackstone - was struck in May 2007, just before the private equity firms initial public offering a month later.

The pact allowed the sovereign wealth fund to own up to 9.99 percent of the private equity firm. In 2008, the sovereign wealth fund raised its stake in Blackstone to 12.5 percent, Reuters reported at that time.

CICs exit from Blackstone comes amid growing trade tensions between Beijing and Washington since President Donald Trump took office just over a year ago.

Trump is seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology and telecoms sectors, two people who had discussed the issue with the Trump administration said on Tuesday.


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