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China sovereign fund may eye Hollywood: report

By AFP

China's 200-billion-dollar sovereign wealth fund may start investing in overseas media including Hollywood production houses, a report said Monday, citing sources close to the fund.

The China Investment Corporation's plan could give Beijing a direct stake in a variety of foreign media content "from South Korean television dramas and Japanese game shows to Hollywood blockbusters", the Times of London said.

The paper cited its sources as saying it had started talks with two American private equity groups that have strong media interests.

"The talks are understood to have included at least one Hollywood film production company," the paper said.

The report came just days after the China Investment Corporation announced it had lost 6.7 billion dollars in its global investment portfolio last year.

The fund was set up to help China find more lucrative ways to place its massive foreign exchange reserves, which stand at 2.13 trillion dollars and are mainly in low-yield instruments such as US Treasury bonds.

However, the fund has so far not lived up to expectations, partly because of its launch date, shortly before the onset of the global financial crisis.

The fund has also raised suspicions abroad about China's intentions, with some critics fearing it would use its financial muscle to buy valuable assets across the globe.

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