Via Economic Times, India.
Earlier this year we heard that China was going to start diversifying its foreign exchange reserves into areas other than various treasury bonds, and this appears to be the first big step. Now, the dollar amounts may be small relative to the 1.2$ TRILLION that China has, but the Chinese generally like to move slowly and cautiously. They are, however, buying a large stake in America's second largest private equity firm, and private equity is certainly a riskier (and more profitable) investment than most of us are able to add to our portfolios.
I hope this gets US lawmakers thinking about how we could be investing our remaining social security surpluses more profitably than just letting other parts of the federal government spend the money. I expect China will probably have huge success with this move - just look at how well pension funds and university endowments tend to do - and China's fund is larger than any of them.