China appointed Ding Xuedong, a deputy secretary-general of the State Council, as head of the nation’s sovereign wealth fund at a time when the prospect of the Federal Reserve reducing stimulus has roiled global markets.
Iron Mountain Inc. and Equinix Inc., two technology companies planning to convert to real estate investment trusts, plunged after saying that the U.S. Internal Revenue Service is scrutinizing their eligibility.
China Investment Corp., the nation’s $482 billion sovereign wealth fund, has met the government’s expectations by delivering 5 percent annualized returns in the five years since its creation, the official Xinhua News Agency reported, citing the fund’s president.
U.S. stocks surged, with the Dow Jones Industrial Average rebounding above 10,000, as China’s commitment to investing in Europe allayed concern the debt crisis will worsen. Energy shares rallied as BP Plc temporarily stopped the flow of oil from a Gulf of Mexico leak.
The euro rose for the first time in four days against the dollar after China’s foreign-exchange regulator denied speculation it’s reviewing its euro-denominated assets, damping concern the European debt crisis will escalate.
China Investment Corp. may name Li Keping, currently an executive at the country’s national pension manager, a new co-head of the sovereign wealth fund, said two CIC executives with direct knowledge of the matter.
Australian Treasurer Wayne Swan said he supports Federal Reserve Chairman Ben S. Bernanke’s quantitative easing and Japanese Prime Minister Shinzo Abe’s reflation policy, in contrast to Europe’s hazardous pursuit of austerity as the world economy struggles to shake off the global financial crisis.