UPDATE 1-China's CIC gives breakdown of U.S. equity stakes

Thomson Reuters






* China sovereign fund CIC lists U.S. equity investments

* Financials, miners, exchange-traded funds dominate

* Chairman says CIC will manage more funds by itself

BEIJING, Feb 9 (Reuters) - China Investment Corp [CIC.UL],
the country's $300 billion sovereign wealth fund, has made its
biggest U.S. equity bets in natural resources and financial
stocks.

A filing with the U.S. Securities and Exchange Commission
detailed equity holdings in U.S. listed companies and funds worth
$9.63 billion at the end of 2009.

About a quarter of the investments is in exchange-traded
funds, giving CIC exposure to markets in Europe, Asia and
emerging markets at a low cost.

The filing, made last Friday, is not exhaustive. It does not
include investments entrusted to outside fund managers or CIC's
stake in private equity house Blackstone .

CIC paid $3 billion for a 10 percent stake in Blackstone in
2007 and bought more shares in 2008.

The biggest holding listed in the SEC filing, worth $3.54
billion, was in Canadian miner Teck Resources Ltd .

Among U.S. holdings, CIC declared a stake of $1.77 billion in
Morgan Stanley and a previously unannounced $713.8 million
holding in BlackRock Inc , the world's largest independent
money manager.

CIC disclosed stakes, mostly small, in more than 60
companies, including:

-- $498 million in the U.S.-traded stock of Brazilian miner
Vale SA ;

-- $29.8 million in Citigroup ;

-- $19.9 million in Bank of America Corp ;

-- $14.7 million in American International Group Inc ;

-- $9 million in Coca Cola Co ;

-- $6.3 million in Apple Inc ;

-- $4.1 million in News Corp .

For CIC's filing, click on
http://www.sec.gov/Archives/edgar/data/1468702/000095012310009135/c95690e13fvhr.txt

CIC has made no secret of its ambitions to develop its own
investment expertise so it can manage more of its money by
itself, cutting down on fees in the process.

Lou Jiwei, the chairman of CIC, said the fund would manage
more of its investments in developed markets internally this year
and steadily accelerate its overseas investments, the China
Securities Journal reported.

"As of now, most of CIC's overseas funds are managed by
outside portfolio managers, but we will gradually increase
in-house investment in more efficient developed markets in the
future," the newspaper paraphrased Lou as saying in an article he
published on Monday. It did not say where the article appeared.

CIC has been investing intensively in resources and
commodities since 2009, mainly because there is still plenty of
room for price gains in those sectors, Lou said.

CIC also needed to hedge against the risk of inflation as the
world economy picked up, he added.

Lou restated CIC's policy to operate the fund as a financial
investor seeking to maximise its returns, not to control the
companies in which it invests.
(Reporting by Aileen Wang and Alan Wheatley; Editing by Ken
Wills)