Friday, September 11, 2009

Green Investment in China

What happens when a sovereign wealth fund worth a billion dollars eyes green energy and infrastructure for investment? China Investment Corp (CIC), a US 200 billion dollar fund is planning to ramp up financial inputs in these sectors to diversify its investments. CIC observed the changes in equity price in terms of infrastructure during the financial crisis and this is what resulted in their new sustainable investment strategy. The wealth fund is looking for deals in new technology and green energy so that the efficiency of electricity transmission can be improved. Their interest in high-yield and high-safety infrastructure projects is being said to promote sustainable development to a great extent.

Asian markets have a huge potential for development of sectors such as energy saving and environmental protection. Unlike the western countries, these are fairly new concepts to Asia and this has encouraged more foreign investors to make green investments.

Olympus Capital Holdings Asia, a private equity firm will also be raising an investment fund of 250 million dollars to concentrate on environment related sectors in India and China. So far, major investment funds have focused their investment strategies in European and American countries but now they are eyeing opportunities in Asia’s green economy as well. Since china is also set to direct future investments towards sustainable development, the country’s future seems to be promising.

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