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Gordon Brown

Brown extends hearty welcome to mainland sovereign fund

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British Prime Minister Gordon Brown has invited the mainland's sovereign fund to invest heavily in his country, despite global worries that the mainland's ample cash could be a source of controversy.

'This is a very substantial fund. It can invest positively,' Mr Brown said in Beijing after a meeting with Premier Wen Jiabao. 'I realise that in some countries it is controversial, but I have talked to Premier Wen about that.'

Mr Brown suggested that China Investment Corp, which manages the mainland's US$200 billion sovereign wealth fund, open an office in London to facilitate deal-making.

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Touting Britain as an investor-friendly market with efficient rules and transparency, Mr Brown said he hoped Britain would become Chinese businesses' top choice for overseas investment.

His remarks are a boost to the mainland's efforts to increase fund outflows from its massive US$1.5 trillion in foreign exchange reserves.

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Mr Wen said that Beijing would earmark US$60 billion to US$70 billion worth of capital to invest abroad.

Allaying concerns that the fund would be used for political purposes, Mr Wen reiterated the government would step aside on deliberations because 'the investment facility is entirely commercial'.

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