The body that manages the bulk of China’s $1,650bn in forex reserves has bought a 1.6% stake in France’s Total, in a sign of its aggressive investment strategy. China’s State Administration of Foreign Exchange, or Safe, which operates under China’s central bank, began building its stake, valued at €1.8bn ($2.8bn), several months ago – and did so with Total’s full knowledge, said sources close to the company. The news is likely to revive debate over economic patriotism in France, while in China, it will heighten tensions between Safe and CIC, the SWF established last September. See also FT.com’s in-depth report on SWFs.

This entry was posted by Gwen Robinson on Friday, April 4th, 2008 at 5:44 and is filed under Capital markets, M&A. Tagged with CIC, SAFE, Total. Edit this entry.