Tuesday 4 June 2024

Exclusive: #Qatar sovereign fund agrees to buy 10% stake in China asset manager, sources say | Reuters

Exclusive: Qatar sovereign fund agrees to buy 10% stake in China asset manager, sources say | Reuters

Qatar's sovereign wealth fund has agreed to buy a 10% stake in China's second-largest mutual fund company, two sources said, underscoring Beijing's increasing ties with the Middle East amid rising tensions with the West.

Qatar's proposed investment in China Asset Management Co (ChinaAMC) comes amid a flurry of activities between China and Gulf countries to deepen political, economic and financial ties, as geopolitical tensions heighten around the Gaza War and the Russia-Ukraine conflict.

China has become one of the major importers of liquefied natural gas (LNG) from the Middle East, firming up ties with Doha as the nation pushes for a massive production expansion project.

Middle East sovereign wealth funds have invested $7 billion in China since June last year, five times the amount seen during the previous 12 months, according to industry data provider Global SWF.

The Qatar Investment Authority (QIA) has agreed to buy the stake in ChinaAMC from investment firm Primavera Capital, said the sources who have knowledge of the situation.

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