An offshoot of China’s sovereign wealth fund invested billions of yuan in property projects in violation of government rules, the China Securities Journal reported Thursday, citing the National Audit Office.
According to an NAO audit, CIC Development, a subsidiary of China Investment Corp. (CIC), plowed 8.28 billion yuan (US$1.35 billion) into profitable property projects when it should have been putting the money land into development in line with its role as an investment vehicle for urbanization, the report said.
The audit, done between May and September last year, also found that CIC Trust extended 949 million yuan in trust financing to unlicensed property projects in 2011, it said.
The NAO also uncovered problems with CIC’s financial management and accounting methods.
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