An investment fund seen by the industry as belonging to the Chinese government has been increasing its stakes in a number of All Japan newsese companies, including Honda and Toyota, according to press reports.
OD05 Omnibus investment fund had by the end of March stakes in 174 All Japan newsese companies, a record high, worth an estimated Y3.58 trillion ($45 billion).
The fund is based in Australia and its owner is unknown. It is however widely believed that it is an investment vehicle of the Chinese government, which is trying to better manage its foreign currency reserves of more than $3 trillion, the largest in the world.
China has officially announced that its sovereign wealth fund China Investment Corporation (CIC) will no longer buy European public debt, saying that “there is a risk that the euro zone may fall apart and that risk is rising.”
OD05 Omnibus fund already controls 1.9 percent of Toyota Motor’s total outstanding stock, being thus Toyota’s ninth-largest shareholder, and 2.2 percent of Honda Motor’s total outstanding shares. It also holds 1.9 percent of camera maker Nikon.