China Goes On U.S. Buying Spree- 6.7 Billion in Morgan Stanley

This ought to be a wake-up call, but it won’t. One can only wonder about the backroom deal with Morgan Stanley. What happens when they dump their shares? And our treasuries?

BEIJING (AP) — China’s giant sovereign wealth fund revealed it has accumulated stakes totaling $9.6 billion in major U.S. companies including Coca-Cola, Apple and Goodyear following a buying spree last year.

Most of the stakes are small, reflecting China Investment Corp.’s strategy of avoiding politically sensitive acquisitions. But they highlight its growing presence in global markets as it invests a portion of Beijing’s $2.4 trillion in foreign reserves.

That strategy is reflected in its disclosure, which includes small holdings in dozens of companies, including $353.8 million in Visa Inc., $6.3 million in Apple Inc., $9 million in Coca-Cola Co. and $1.4 million in Goodyear Tire & Rubber Co.

It also listed a $1.7 billion stake in Morgan Stanley, which CIC bought in June when the investment bank raised money to repay U.S. government bailout funds. CIC also agreed in 2007 to pay $5 billion for a nontradable 9.9 percent share of Morgan Stanley, but that did not appear in the latest disclosure.

Hat Tip- Lucianne

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