A CIC wish list

China Investment Corp (CIC), a government-owned fund for investment fun and games, said it would recoup a US$5 billion investment made through its affiliate Stable Investment Corp in a US money-market fund. Earlier this week, it was reported that the money was in danger of being locked up given that the US fund had frozen all withdrawals. But it turns out that the CIC affiliate had just beaten the bell, asking for their money back before the freeze was implemented. Good for them. So, let’s see, what can the government do with an extra US$5 billion? Three thoughts. The first might be showing some love to Air China, which announced yesterday that it expects a nine-month loss because of higher fuel prices and travel disruptions this year like the Olympics. The airline’s passenger numbers in September fell by 4.5%, marking the seventh straight month of declining traffic. A second option could be China’s metal producers. Two more firms have cut production, saying global prices have fallen below production costs. “Current prices are at a level nobody can bear,” said a Chalco spokesperson. That sounds like a cry for help. And behind door number three, a few billion from the government may help get to the bottom of a new chemical-laced milk powder frozen dumpling frozen green bean scandal that has left three people in Japan ill. Testing in Tokyo found frozen green beans from Yantai Beihai Foodstuffs were shown to have 34,500 times the pesticide residue permitted. Japan has halted all bean shipment from China while testing/damage control continues.