Russia is the 6th largest economy in the world.
See More: http://rdif.ru/Eng_Numbers/
Sovereign Wealth Funds (SWF)
The Russian Direct Investment Fund (RDIF) is a $10 billion [SWF] fund established to make equity investments primarily in the Russian economy.
In all of its investments, the fund is uniquely mandated to secure co-investment that as a minimum matches its commitment – thus acting as a catalyst for direct investment into Russia.
RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from blue chip international co-investment partners.
RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.
The fund was created in 2011 under the leadership of the President and Prime Minister of the Russian Federation and is managed by a highly qualified team of private equity investment professionals with broad international and Russian experience.
is an investment company [SWF] based in Singapore with a multinational staff of 490 people; portfolio is S$223 billion and is focused primarily in Asia
President of South Korea, Park Geun-hye, met with executives from Temasek Holdings, Singapore’s sovereign wealth fund, and discussed expanding the fund’s investments in Korea and other matters of mutual interest.
“I am glad that the Temasek Connection conference is being held in Korea this year, after it was postponed last year due to the deterioration of South Korea-North Korea relations,” said President Park in a meeting at Cheong Wa Dae on May 27. “I hope the conference will be a good chance to understand Korean industries and culture, and to find new opportunities for investment in areas with high growth potential.”
President Park also expressed her gratitude to Temasek for investing in promising Korean startup companies and small- and medium-sized enterprises. “Korea has a competitive edge in automobiles and IT industries, as well as creative industries, such as music and television. Thus, there are many companies in which Temasek could be interested in investing,” the president added.
Below is a curious research paper:
Barriers to Long-Term Cross-Border Investing: A Survey of Institutional Investor Perceptions
Committee on Global Thought, Columbia University
Columbia Business School – Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)
Laurence H. Wilse-Samson
Tsinghua University – PBC School of Finance; Columbia University
SWF Research Initiative, Amundi – Credit Agricole Group
September 17, 2014
Rotman International Journal of Pension Management, Vol. 7, No. 2, 2014
Because of market failures, domestic investment resources are often insufficient to fully finance the public and private capital formation critical to global wealth preservation and growth. It is thus important to understand the factors that drive cross-border investments, including the potential fit between the objectives of international long-term investors and public policy objectives. This article reports the results of a survey of such investors.
The survey also found a surprising gap between the responding funds’ aspiration to be long-term investors and their apparent willingness and/or ability to implement long-term investment strategies. These findings highlight the importance of a facilitative policy environment for understanding the benefits of, and implementing, long-horizon cross-border investments.
Number of Pages in PDF File: 11
Click to access finalvision_sovereign_wealth_funds.pdf
Bank of China (Hong Kong) partners with UnionPay International to pioneer the RMB Settlement Service of UnionPay Card for Hong Kong Merchants
04 Dec 2013 Via: http://www.bochk.com/web/about/press_release/press_release_details.xml?section=about&level_2=press_release&fldr_id=32042&selFldr=32042&pfid=84&cid=61326
Bank of China (Hong Kong) ( “BOCHK” ) and UnionPay International today jointly announced to pioneer the RMB settlement service of UnionPay Card for merchants in Hong Kong. In addition to providing RMB settlement service for the merchants accepting payments made by UnionPay cards, this initiative will further promote the development of cross-border settlement in RMB and enhance the competitive advantages for Hong Kong merchants.
The launch ceremony was officiated by Mr Niu Xiaomin, Deputy President of the People’s Bank of China ( “PBOC” ) Guangzhou Branch; Mr Esmond Lee, Executive Director (Financial Infrastructure) of the Hong Kong Monetary Authority; Mr Cai Jianbo, CEO of UnionPay International; Mr Jason Yeung, Deputy Chief Executive of BOCHK; and Mr Dickson So, General Manager of BOC Credit Card (International) Limited ( “BOC Credit Card” ).
BOC Credit Card is the acquirer of the RMB settlement service of UnionPay Card for merchants in Hong Kong. Sa Sa International Holdings Ltd, Chow Tai Fook Jewellery Co. Ltd, Sogo Hong Kong Co. Ltd, Oriental Watch Group and Yue Hwa Chinese Products Emporium Ltd are among the first batch of participating merchants of the service. They will be able to settle their HKD transactions in HKD or RMB conveniently to save the time required for conversion at banks.
During his address at the ceremony, Mr Cai Jianbo, CEO of UnionPay International, said, “The RMB settlement service launched by UnionPay International and BOCHK for Hong Kong merchants has opened up a direct channel for acquiring the currency and thus reduces exchange losses. As a result, merchants would be more willing to accept the UnionPay RMB Card, providing better services for the cardholders who wish to acquire and use RMB. Moreover, this new business, which involves circulation and settlement of RMB as the single currency with the UnionPay Card, facilitates the internationalisation of RMB. It also helps expand Hong Kong’s RMB capital pool and promote the development of the offshore RMB business. Through its new offering, UnionPay International will continue to further support Hong Kong acquirers in innovating RMB services, presenting more opportunities to local merchants who accept the UnionPay cards.”
Mr Jason Yeung, Deputy Chief Executive of BOCHK, said, “BOCHK takes great pleasure in joining hands with UnionPay International to pioneer the RMB settlement service of UnionPay Card for merchants in Hong Kong. In line with the Circular concerning the Simplification of Cross-border RMB Procedures and Improvement of Relevant Policies issued by PBOC in July this year, this initiative will promote the use of RMB by banks, financial institutions and corporations as well as further enhance the efficiency of RMB cross-border settlement. The service will help strengthen the competitiveness of Hong Kong as an offshore RMB business centre and boost growth in cross-border flow of visitors, commodities and capital given the increasingly closer economic ties between Hong Kong and the Mainland.”
UnionPay International possesses comprehensive service capability in the international credit card market while BOCHK enjoys unique competitive edges in the offshore RMB business. By combining the strengths of both strong franchises, this innovative service helps meet the growing needs for cross-border settlement in RMB. Over 11 million UnionPay cards have been issued by card issuance institutions in Hong Kong, including BOC Credit Card.
As the market leader in the RMB business in Hong Kong, the BOCHK Group has the most extensive service networks, a diversified range of RMB products and services, a proven track record of cross-border trade and settlement, as well as a strong professional team with sound knowledge of the financial policies and regulations of both Hong Kong and the Mainland markets. Capitalising on its close collaboration with its parent, Bank of China, the BOCHK Group provides quality and professional RMB services to its customers.
For more details on the RMB settlement service of UnionPay Card provided by BOC Credit Card for Hong Kong merchants, please call its Merchant Business Development Hotline at (852) 2853 8702.
– End –
About Bank of China (Hong Kong) Limited
Bank of China (Hong Kong) Limited ( “BOCHK” ), established on 1 October 2001, is a leading listed commercial banking group in Hong Kong. With over 260 branches, more than 580 ATMs and other distribution channels in Hong Kong, BOCHK and its subsidiaries offer a comprehensive range of financial products and services to individual and corporate customers. BOCHK is one of the three note issuing banks in Hong Kong. In addition, the BOCHK Group (comprising BOCHK, Nanyang Commercial Bank and Chiyu Banking Corporation) and its subsidiaries have 41 branches and sub-branches in the Mainland of China to provide cross-border banking services to customers in Hong Kong and the Mainland. BOCHK is appointed by the People’s Bank of China as the Clearing Bank for Renminbi business in Hong Kong. On 13 July 2010, BOCHK was authorised as the Clearing Bank of RMB banknotes business for the Taiwan region.
BOC Hong Kong (Holdings) Limited, BOCHK’s holding company, began trading on the main board of the Stock Exchange of Hong Kong on 25 July 2002, with stock code “2388” , ADR OTC Symbol “BHKLY”.
About BOC Credit Card (International) Limited
BOC Credit Card (International) Limited ( “BOC Credit Card” ) was established in 1980 and is a wholly-owned subsidiary of BOCHK. All credit cards issued by BOC Credit Card are collectively called BOC Credit Cards. BOC Credit Card has issued various international credit cards and revolving loan cards, and is now the card issuing and acquiring processing centre for BOCHK and its subsidiary banks (Nanyang Commercial Bank and Chiyu Banking Corporation), as well as other institutions and organisations. BOC Credit Card plays an important role in the credit card business in the Mainland of China, Hong Kong and Macau.
BOC Credit Card provides a wide variety of products to serve different market needs. Its product family includes the Visa Infinite, Visa and MasterCard Platinum Card, Titanium Card, Gold Card, Classic Card, Business/Corporate Card, Purchasing Card, Co-branded Card (with over 20 co-branding corporations and organisations), Intown Virtual Credit Card, BOC CUP Dual Currency Credit Card and BOC Express Cash Card. It also took the lead in launching the UnionPay Card Payment Service in Hong Kong in January 2004.
About UnionPay International
UnionPay International is a subsidiary focusing on international business of UnionPay. Unionpay International defines Membership Scheme to be the basis for development of the worldwide UnionPay Card acceptance network; promotes the international issuance and usage of the UnionPay Card as well as other innovative payment solutions and enhance the international brand position of UnionPay. By cooperation with over 200 associations worldwide, the UnionPay international network has enabled the UnionPay Card acceptance in over 140 countries and regions to date. UnionPay cards have been issued in above 30 countries and regions. UnionPay International provides quality, efficient and secure cross-border payment services to the world’s largest cardholders group; and provides convenient and localized service to the increasing overseas UnionPay cardholders.
Another Conspiracy Theory Becomes Fact: The Fed’s “Stealth Bailout” Of Foreign Banks Goes Mainstream
Back in June 2011, Zero Hedge first posted:
which we followed up on various occasions, most notably with
With the following key chart:
Of course, the conformist counter-contrarian punditry, for example the FT’s Alphaville, promptly said this was a non-issue and was purely due to some completely irrelevant microarbing of a few basis points in FDIC penalty surcharges, which as we explained extensively over the past 3 years, has nothing at all to do with the actual motive of hoarding Fed reserves by offshore (or onshore) banks, and which has everything to do with accumulating billions in “dry powder” reserves to use for risk-purchasing purposes (alas understanding that would require grasping that reserves are perfectly valid collateral to use as margin against purchase of such market moving products as e-mini futures, which in turn explains why traders usually don’t end up as journos).
Fast, or rather slow, forward to today when none other than the WSJ’s Jon Hilsenrath debunks yet another “conspiracy theory” and reveals it as “unconspiracy fact” with “Fed Rate Policies Aid Foreign Banks: Lenders Pocket a Spread by Borrowing Cheaply, Parking Funds at Central Bank“
Wait… the Wall Street Journal said that? Yup.
Hmm, we almost feel like we should bring up the dreaded “P” word considering the bolded sentence is a recap of what we said in February of 2013 in “How The Fed Is Handing Over Billions In “Profits” To Foreign Banks Each Year.” That’s ok, though: imitation, flattery and all that…
So here is Hilsy “figuring out” what we have been explaining for over 3 years!
Actually it is a goal, but that would lead to a whole lot of embarrassing congressional hearings which the Fed would rather avoid, plus nobody really “gets” it. The reason why? Apparently things are so “complex” that anyone who figured it out years ago was clearly a conspiracy theorist:
In other words, the Fed-funded risk-free carry trade finally goes mainstream. Of course, all those who read ZH in 2011 will know all of this by now:
But don’t blame the banks – they are merely doing what the Fed is encouraging them to do. And after all who wouldn’t collect billions in risk free cash?
Sadly, the WSJ ends just before it gets good. So without further ado, here is what happens if and when one extrapolates a rising rate environment in terms of Fed handouts to foreign banks, from what we said in February of 2013:
Obviously, nobody asked Bernanke and nobody has asked Yellen this simple question, because until last night apparently nobody aside from the Zero Hedge community had any grasp of what is going on.
That said, we doubt that anyone in control will ask any related questions in the near of not so near future even with Hilsenrath’s “How The Fed Is Bailing Out Foreign Banks For Dummies” primer, because let’s not forget – the same banks that control the Fed are also the same banks that purchase politicians at every possible opportunity (see for example: With Cantor Down, Which Other Politicians Has Goldman Invested In?).
In fact, the only good news from Hilsenrath’s report is that yet another conspiracy theory has been documented as unconspiracy fact. Then again, Zero Hedge readers knew all of this over three years ago, for free.