The US Federal Reserve said China Investment Corp (CIC), China’s sovereign wealth fund, cannot subsidize loans for its companies through a branch of Industrial and Commercial Bank of China (ICBC) set to open in New York, Bloomberg reported. ICBC was given permission to set up its first US branch in New York last month, making it the fourth Chinese bank to do so. About 75% of ICBC’s shares are held by the Chinese government. Companies controlled by CIC may only borrow on "market terms" from the ICBC branch, and such companies are limited to 20% of the branch’s lending base, the Fed said in a letter released yesterday. The Fed added that CIC-controlled US bank branches "may not cross-market goods and services" in the US with other companies controlled by CIC.