China has accumulated a stake of just less than 1 percent in BP, the British oil company, the company confirmed Tuesday, a move that raises fresh questions about Beijing's strategy for investing its huge foreign currency reserves.
BP said it was aware of the Chinese stake, which is worth about $2 billion, and that it welcomed all shareholders.
The British company declined to identity of the specific investor, but China operates the State Administration of Foreign Exchange, an arm of the central bank that manages the country's $1.68 trillion in currency reserves, which is known as SAFE. China also controls the China Investment Corp., a $200 billion sovereign wealth fund that Beijing set up last September to increase the returns on its reserves by taking greater risks.
China now owns about one percent of the British oil company BP, which is worth about $2 billion. This ownership raises questions about Beijing's foreign currency reserve investments.
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