CIC increases its stake in US bank

时间：2009-07-01 07:27:39

（单词翻译:单击）

China Investment Corp (CIC), the nation's $200 billion sovereign wealth fund, plans to spend $1.2 billion on buying 44.7 million shares of common stock in Morgan Stanley.

Morgan Stanley, the sixth-largest US bank by assets, said last night it was looking to sell approximately 80.2 million shares to raise $2.2 billion in a public offering. That equated1 to $27.44 per share, an 8.2 percent discount on the closing price on Monday of $29.89 per share.

CIC said in a statement that the purchase raises its equity2 ownership in Morgan Stanley to approximately 9.86 percent and reduces the bank's overall cost basis and increases its returns potential.

CIC purchased $5.6 billion mandatory3 convertible4 securities in Morgan Stanley's common stock in December 2007, representing approximately 9.86 percent equity ownership but its stake was diluted5 to approximately 7.86 percent after Mitsubishi UFJ Financial Group Inc bought into the bank last October.

Morgan Stanley said yesterday it has not received approval for the deal but it believed that it will satisfy the criteria6.

Morgan Stanley received $10 billion as part of the $700 billion Troubled Asset Relief Program, a bailout plan by the US government aimed at shoring up its ailing7 banking8 sector9.

"Morgan Stanley is widely expected to be able to leverage10 on its strengthened financial position and will be on the road of resuming its successful trajectory11 amid the dramatic restructuring of the international financial services industry," CIC said on its website.

CIC was established in 2007 to find better returns for China's massive foreign exchange reserves. It earmarks one-third of its money for overseas investment and two-thirds for the domestic market.

Wang Jianxi, the fund's vice-general manager, said in March that CIC would increase its investment in all classifications, given the global financial crisis had led to a tailspin in asset prices and therefore good investment opportunities.

American Express Co and JPMorgan Chase & Co also announced plans on Monday to raise capital.

Questions:

1. China Investment Corp (CIC) plans to spend how much on buying 44.7 million shares of common stock in Morgan Stanley?

2. How much did Morgan Stanley receive from the $700 billion Troubled Asset Relief Program?

3. In which year was CIC established?

Answers:

1. $1.2 billion.

2. $10 billion.

3. 2007.


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1 equated 4e5ed63ebe0d19855344c43d4526ea4f     
adj.换算的v.认为某事物（与另一事物）相等或相仿( equate的过去式和过去分词 )；相当于；等于；把（一事物） 和（另一事物）等同看待
参考例句：
  • Production costs for the movie equated to around 30% of income. 这部电影的制作成本相当于收益的30%。
  • Politics cannot be equated with art. 政治不能同艺术等同起来。
2 equity ji8zp     
n.公正，公平，（无固定利息的）股票
参考例句：
  • They shared the work of the house with equity.他们公平地分担家务。
  • To capture his equity,Murphy must either sell or refinance.要获得资产净值，墨菲必须出售或者重新融资。
3 mandatory BjTyz     
adj.命令的；强制的；义务的；n.受托者
参考例句：
  • It's mandatory to pay taxes.缴税是义务性的。
  • There is no mandatory paid annual leave in the U.S.美国没有强制带薪年假。
4 convertible aZUyK     
adj.可改变的，可交换，同意义的；n.有活动摺篷的汽车
参考例句：
  • The convertible sofa means that the apartment can sleep four.有了这张折叠沙发，公寓里可以睡下4个人。
  • That new white convertible is totally awesome.那辆新的白色折篷汽车简直棒极了。
5 diluted 016e8d268a5a89762de116a404413fef     
无力的，冲淡的
参考例句：
  • The paint can be diluted with water to make a lighter shade. 这颜料可用水稀释以使色度淡一些。
  • This pesticide is diluted with water and applied directly to the fields. 这种杀虫剂用水稀释后直接施用在田里。
6 criteria vafyC     
n.标准
参考例句：
  • The main criterion is value for money.主要的标准是钱要用得划算。
  • There are strict criteria for inclusion in the competition.参赛的标准很严格。
7 ailing XzzzbA     
v.生病
参考例句：
  • They discussed the problems ailing the steel industry. 他们讨论了困扰钢铁工业的问题。
  • She looked after her ailing father. 她照顾有病的父亲。
8 banking aySz20     
n.银行业，银行学，金融业
参考例句：
  • John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
  • He possesses an extensive knowledge of banking.他具有广博的银行业务知识。
9 sector yjczYn     
n.部门，部分；防御地段，防区；扇形
参考例句：
  • The export sector will aid the economic recovery. 出口产业将促进经济复苏。
  • The enemy have attacked the British sector.敌人已进攻英国防区。
10 leverage 03gyC     
n.力量，影响；杠杆作用，杠杆的力量
参考例句：
  • We'll have to use leverage to move this huge rock.我们不得不借助杠杆之力来移动这块巨石。
  • He failed in the project because he could gain no leverage. 因为他没有影响力，他的计划失败了。
11 trajectory fJ1z1     
n.弹道，轨道
参考例句：
  • It is not difficult to sketch the subsequent trajectory.很容易描绘出它们最终的轨迹。
  • The path followed by a projectile is called its trajectory.抛物体所循的路径称为它的轨道。

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