China planning to invest into Blackstone Group

China planning to invest into Blackstone Group

The Chinese government recently announced that they are going to establish a foreign exchange investment company.

This company has now revealed that they are considering plans to make a $3 billion investment in the Blackstone Group.

Blackstone is one of the most prominent private equity firms in the United States and this investment is likely to be made in the form of nonvoting common units of Blackstone.

This investment company is being setup by the Chinese government to help diversify part of its $1.202 trillion of foreign exchange reserves.

Frank Holmes, chief executive of U.S. Global Investors spoke about this investment plan: “This is a very, very significant move and it symbolizes that China believes in America. We are talking about a very sophisticated country. This is an excellent strategy for them to bring their dollars back into America.”