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Saudi Arabia Turns Toward China

Shotgunner51

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Saudi Arabia Turns Toward China
Crown Prince Mohammed is guiding the kingdom toward an assertive foreign-policy stance.
By Karen Elliott House
Nov. 9, 2021 6:24 pm ET

Is Saudi Arabia’s wealth fund tipping towards China?
Saudi Arabia’s sovereign wealth fund may be eyeing expanding its holdings beyond the United States and Europe, after it applied for an institutional investor license in China.
By Matthew MartinBloomberg
4 Nov 2021
363657225.jpg

The Public Investment Fund, which hasn’t disclosed any investments in China, has ambitions to control $2 trillion of assets and become a global investment powerhouse [File: Maya Anwar/Bloomberg]


Saudi Arabia's wealth fund moves closer to direct China stock deals
$450bn Public Investment Fund has applied for a qualified foreign institutional investor licence in China
Bloomberg
Nov 5, 2021
 

Daniel808

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Saudi Arabia's Wealth Fund Moves Closer to direct China stock deals
$450bn Public Investment Fund has applied for a qualified foreign institutional investor licence in China
DQF54UA33ZN6ZRPJ7LXBELNMOM.jpg

Nov 5, 2021


Saudi Arabia’s sovereign wealth fund could start making major investments in Chinese companies, after so far limiting its overseas holdings to mostly the US and Europe.

The $450 billion Public Investment Fund has applied for a qualified foreign institutional investor licence in China, according to information published on the website of the country’s top securities regulator. That will give it the ability to directly trade renminbi-denominated stocks, rather than having to go through third parties.

A tilt towards China would make sense for the kingdom as it looks to develop economic ties through investment by its sovereign fund. China is the kingdom’s biggest trading partner and a top customer for Saudi Aramco, which is chaired by PIF governor Yasir Al Rumayyan.

Many global investors are warming to China’s battered stocks amid bets that Beijing’s regulatory overhaul has potentially peaked. The world’s second-biggest economy has also been an appealing destination for sovereign investors, with Russia’s wealth fund converting billions of its dollar holdings into yuan as part of an effort to make the country less vulnerable to sanctions.
The PIF, which has not disclosed any investments in China, has ambitions to control $2 trillion of assets and become a global investment powerhouse.

But since unveiling a plan to transform itself from a domestically focused holding company five years ago, its publicly disclosed investments have been mostly in the US and Europe.
Its first major international deal was a $3.5bn investment in Uber Technologies in 2016. More recently it backed Lucid Motors before it went public through a deal with a special purpose acquisition company.

Last March, as global markets crashed during the onset of the coronavirus pandemic, the PIF got a $40bn transfer from the kingdom’s reserves to bet that stocks would recover quickly

https://www.thenationalnews.com/bus...und-moves-closer-to-direct-china-stock-deals/


This is a Big News indeed
 

Shotgunner51

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This is a Big News indeed
Yes SWF (sovereign welfare funds) are true behemoths that may sway economies or even politics of foreign nations! PIF is one of the two Saudi SWF traditionally put their monies in US & Europe only, now adding China to their portfolio is indeed a breaking news. Only Crown Prince Mohammed himself can make such a heavy-weight decision, one that offends west's vested interests, perhaps in a way demonstrating his assertive foreign-policy stance.

List of world's largest sovereign funds
Note: GCC nations as well as oil-rich Norway tend to maintain very low Forex Reserves and very high SWF

Untitled.jpg
 
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Battlion25

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During the COP26 negotiations Saudi Arabia wanted to block the language being used against Fossil fuel and it got backing from China to block that out from any future agreement.

China, Saudi seek to block anti-fossil fuel language in UN climate deal

Saudi Arabia is a major crude producer and the de facto head of the Organisation of the Petroleum Exporting Countries.

By REUTERS

Published: NOVEMBER 13, 2021 03:35

China and Saudi Arabia are among a group of countries seeking to prevent the UN climate deal in Scotland from including language that opposes fossil fuel subsidies, according to two sources close to the negotiations.

The issue of subsidies for oil, gas, and coal has become a major sticking point at the summit, where negotiators have already blown past a Friday deadline to strike an agreement aimed at keeping alive a goal to limit global warming to 1.5 degrees Celsius.

Existing drafts of the agreement negotiated over the past two weeks would request that governments unwind public financial support for fossil fuels, which scientists say are the primary drivers of human-caused climate change.


US special climate envoy John Kerry told the summit on Friday that trying to curb global warming while governments spend hundreds of billions of dollars supporting the fuels that cause it was "a definition of insanity".

Other Western nations, including members of the European Union and Britain, are also pushing to keep the reference to removing fossil fuels subsidies.

The two sources, who asked not to be named because they are not authorized to speak publicly about the talks, said China and Saudi Arabia were pushing to have the language removed.

Efforts to reach the Saudi and Chinese delegations Friday evening were unsuccessful.

China, the world’s top emitter of greenhouse gases, is a significant oil and coal producer. Earlier this week, China announced a joint agreement with the United States at the Glasgow summit to ramp up its ambitions to fight climate change, including by accelerating its phase-down of coal this decade and by curbing methane emissions.


Saudi Arabia is a major crude producer and the de facto head of the Organisation of the Petroleum Exporting Countries.

Saudi Energy Minister Prince Abdulaziz bin Salman Al-Saud told the conference earlier this week that a deal to fight climate change should not target any one particular source of energy, arguing emissions can be brought down by other means.
 

Shotgunner51

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The last time it was Pak who mediated the turning of the USA toward China to check the USSR, and the rest is history…..
Yes bro. The Sino-Soviet split that began from 1956 was a geopolitical event transforming the bi-polar cold war into a tri-polar one, Pakistan was the only party trusted by both Beijing and Washington.
 
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Shotgunner51

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During the COP26 negotiations Saudi Arabia wanted to block the language being used against Fossil fuel and it got backing from China to block that out from any future agreement.
Most nations if not all have already committed to a common goal of reaching carbon neutral in the future (China has pledged 2060), I think Saudi stance is legit, there's no need to explicitly "monsterise" fossil fuel.
 

Char

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Saudi Arabia Turns Toward China
Crown Prince Mohammed is guiding the kingdom toward an assertive foreign-policy stance.
By Karen Elliott House
Nov. 9, 2021 6:24 pm ET

Is Saudi Arabia’s wealth fund tipping towards China?
Saudi Arabia’s sovereign wealth fund may be eyeing expanding its holdings beyond the United States and Europe, after it applied for an institutional investor license in China.
By Matthew MartinBloomberg
4 Nov 2021
View attachment 793077
The Public Investment Fund, which hasn’t disclosed any investments in China, has ambitions to control $2 trillion of assets and become a global investment powerhouse [File: Maya Anwar/Bloomberg]


Saudi Arabia's wealth fund moves closer to direct China stock deals
$450bn Public Investment Fund has applied for a qualified foreign institutional investor licence in China
Bloomberg
Nov 5, 2021

The world is slowly changing every day. There will be a day of accumulation from quantitative changes to essential changes.
 

Song Hong

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If possible, Al Saud family would like to serve the US interest in all areas like the most loyal slaves. Unfortunately the west are never satisfied and want ever more pound of blood from KSA.

The West are wary of nations developing fast, and now super charging zero CO2 campaign to make the rest of world perpetually poor. Anti climate change racket which will see Saudi oil revenue drop to zero. While Saudi need monies now to invest in future technologies, US is threatening Saudi to lower oil price to stall US runaway inflation.

If West is not that evil, we will surely see KSA singing Uighur genocide in lock step with west.
 

Mista

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Yes SWF (sovereign welfare funds) are true behemoths that may sway economies or even politics of foreign nations! PIF is one of the two Saudi SWF traditionally put their monies in US & Europe only, now adding China to their portfolio is indeed a breaking news. Only Crown Prince Mohammed himself can make such a heavy-weight decision, one that offends west's vested interests, perhaps in a way demonstrating his assertive foreign-policy stance.

List of world's largest sovereign funds
Note: GCC nations as well as oil-rich Norway tend to maintain very low Forex Reserves and very high SWF

View attachment 793084

I wonder if the estimate for Singapore's GIC is accurate, because it's a very large sum for a non-oil small state like SG lol. Unless the estimate includes our official foreign reserves, which should be managed separately by our central bank MAS.

https://www.straitstimes.com/business/good-gic-showing-will-give-coffers-a-boost
 

Shotgunner51

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I wonder if the estimate for Singapore's GIC is accurate, because it's a very large sum for a non-oil small state like SG lol. Unless the estimate includes our official foreign reserves, which should be managed separately by our central bank MAS.

https://www.straitstimes.com/business/good-gic-showing-will-give-coffers-a-boost
Forex reserves is entirely different thing bro, it's separately managed/booked by MAS. As of 2021Q2, your forex reserves stands at SG$ 535.459 billion (roughly US$ 395 billion).

The value of assets hold by GIC/Temasek could even be bigger cos asset prices (global stock markets, valuation of unicorns across the world, etc) change all the time. As of 2021Q2, Singapore's Direct Investment (outbound FDI) stands at SG$ 1.715 trillion, Portfolio Investment SG$ 2.227 trillion, a big chunk of those are held through GIC/Temasek. Personally I believe GIC/Temasek combined should hold around US$ 1 trillion of AUM at the moment.

Yes Singapore is a non-oil small state, but the hi-tech industries and hi-end services (banking/financial in particular) is extremely competitive so current account surplus has been strong for decades, making it a wealthy state, one of world's top creditor nations. To pivot away from hoarding Forex Reserves, China also started to construct SWF in late 1990's with expertise sort from Singapore, Kuwait. Ho Ching (CEO of Temasek, wife of Lee Hsien Loong) has been instrumental in helping China design/build the sovereign funds.

 
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Mista

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Forex reserves is entirely different thing bro, it's separately managed/booked by MAS. As of 2021Q2, your forex reserves stands at SG$ 535.459 billion (roughly US$ 395 billion).

The value of assets hold by GIC/Temasek could even be bigger cos asset prices (global stock markets, valuation of unicorns across the world, etc) change all the time. As of 2021Q2, Singapore's Direct Investment (outbound FDI) stands at SG$ 1.715 trillion, Portfolio Investment SG$ 2.227 trillion, a big chunk of those are held through GIC/Temasek. Personally I believe GIC/Temasek combined should hold around US$ 1 trillion of AUG at the moment.

Singapore is a non-oil small state, but the hi-tech economy and hi-end services (financial in particular) is extremely competitive so current account surplus has been strong for decades, making it a wealthy state, one of world's top creditor nations. To pivot away from hoarding Forex Reserves, China also started to construct SWF in late 1990's with expertise sort from Singapore, Kuwait.


We're also planning to transfer our reserves from MAS to GIC to invest for greater long term returns, otherwise inflation will erode its purchasing power due to low global interest rates.


The returns on our reserves (allowed to spend up to half of real returns) are already the largest source of our revenue, more than the GST or income tax. You can say that the performance of fund managers in our SWFs have greater implications on our budget than a tweak in tax policy lol.

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