SOURCE: Committee of 100

April 17, 2008 20:07 ET

Sovereign Wealth Funds Need Not Be Feared, Say Experts

Committee of 100 17th Annual Conference Opens

LOS ANGELES, CA--(Marketwire - April 17, 2008) - Sovereign wealth funds have been active global investors for many years and need not be feared, said a panel of experts at the Committee of 100's 17th Annual Conference. "Sovereign wealth funds are a part of globalization," said Jesse Wang, Deputy General Manager of China Investment Corporation (CIC), "China is actively integrated in this process." Added Richard H. Clarida, Executive Vice President and Global Strategic Advisor at PIMCO: "We live in a world of incredible financial globalization. It's really not appropriate to paint these funds with a broad brush and put all these investors in one category."

But when the China Investment Corporation was launched in September last year, the news created waves around the world, with some critics raising questions about political motives and corporate governance standards. "Before the CIC, sovereign wealth funds had existed for over half a century, peacefully making a lot of investments," Wang observed. "We are very open to questions and we want to actively engage in discussions [about what we do]."

"The sovereign wealth fund issue is much broader than just China," Robert Kaproth, Director, International Monetary Policy, U.S. Department of the Treasury, remarked. Yet "sovereign wealth funds have attained a systemic significance. The essential challenge is to address implication of sovereign wealth funds in a sensible, rational way without resorting to protectionism." Explained Donald Tang, Vice Chairman of Bear Stearns: "We have to objectively create new rules for sovereign wealth funds to benefit from this new source of capital while not ever compromising national security." He added that "the growth of sovereign wealth funds has raised legitimate questions pointing to the need for new policy principles for the funds and for the countries in which they invest."

The 17th Annual Conference of the Committee of 100, an organization of leading Chinese Americans, has brought together more than 700 participants to discuss key issues between the U.S. and Greater China under the theme "Bridging Progress, Sharing Vision." "Our conference intends to provide an open forum for seeking better understanding of the global economy and current issues such as sovereign wealth funds. These funds underscore the need for broad policy discussions and the adoption of accepted best practices," said General John L. Fugh, Chairman of the Committee of 100.

Founded in 1989 by prominent Chinese Americans, the Committee of 100 is an independent, non-partisan, non-profit membership organization composed of Chinese American leaders in a broad range of professions. With members' knowledge and experience, the Committee is committed to a dual mission: (1) encouraging constructive relations between the U.S. and Greater China and (2) encouraging the full participation of Chinese Americans in all aspects of American life.

Committee of 100
17th Annual Conference
"Bridging Progress, Sharing Vision"
April 17-19th, 2008
The Beverly Hilton
Beverly Hills, CA

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