From MarketWatch.com:
China's $200 billion sovereign wealth fund, China Investment Corp., is preparing to invest up to $2 billion in U.S. mortgage securities under the U.S. Treasury-backed Public-Private Investment Plan (PPIP), according to a media report Monday.
The Beijing-based fund, which is funded by cash from China's foreign exchange reserves, is in talks with at least a dozen PPIP managers and sub advisors, according to a Reuter's report, which cited sources it did not identify.
The report said CIC has yet to select any companies but is likely to finalize a decision before the end of August.
China Investment Corp. was eager to participate in real estate securities because it believes the U.S. property market will start to recover later this year in a gradual fashion, the repots cited its sources as saying.