CIC Picks Blackstone and Morgan Stanley for Allocations

NEW YORK (Reuters) – Chinese sovereign wealth fund China Investment Corp plans to invest hundreds of millions of dollars with Morgan Stanley’s (MS.N) asset management unit and Blackstone Group LP (BX.N), The Wall Street Journal reported on Thursday, citing sources.

China Investment Corp has finalized an allocation of $500 million to Blackstone Group and plans to have Morgan Stanley oversee additional money, the newspaper reported. The newspaper reported last month that CIC was poised to place $500 million with Blackstone.

The newspaper said the $200 billion Beijing-based CIC is favoring firms it already knows as it pushes into U.S. hedge fund investing. The fund has invested $10 billion to acquire stakes in Blackstone and Morgan Stanley since 2007.

Morgan Stanley and Blackstone did not immediately return messages seeking comment.

CIC was created in 2007 to manage part of China’s foreign exchange reserves for higher returns. The fund has not published any official financial statements. (Reporting by Steve Eder, Joseph A. Giannone and Megan Davies; Editing by Lisa Von Ahn)