China’s sovereign wealth fund has tapped Goldman Sachs to help invest as much as $5 billion in the US manufacturing industry, sources told Bloomberg. Goldman Sachs will run a newly established private equity fund and invest some money alongside China Investment Corp., said the people, who asked not to be identified because the effort hasn’t been publicly announced. The fund is expected to be unveiled this week, when Goldman Sachs Chief Executive Officer Lloyd Blankfein will be in China as part of President Donald Trump’s visit. CIC, currently led by President Tu Guangshao after Chairman Ding Xuedong returned to the State Council in February, is boosting investments in private equity, real estate and hedge funds to diversify from listed companies and pursue returns above market averages, company executives said earlier this year. Goldman Sachs may only be able to contribute 3% of the fund because of US rules regarding banks’ private-equity investments.
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