BEIJING, Sept 2 (Reuters) - China's central bank has acquired a stake of
just more than 0.7 percent in Drax , which runs Britain's biggest
coal-fired power station, the U.K.'s Daily Telegraph reported on Tuesday.
The People's Bank of China built its stake over the past year, in what
would be the latest case of the central bank quietly striking out on its own to
invest tiny portions of the country's $1.81 trillion in foreign exchange
reserves.
A Drax spokesman said the company was aware of the investment, which
amounted to about 18 million pounds ($32.22 million), and welcomed all long-term
investors, the Daily Telegraph reported.
The press office of the central bank said it had no comment.
Beijing last year established a $200 billion sovereign wealth fund, the
China Investment Corp, to increase returns on its forex holdings, and it has
taken high-profile stakes in Morgan Stanley and Blackstone Group .
But there have been British press reports that the central bank itself
has acquired small holdings in U.K. insurers Legal & General , Old
Mutual and Prudential on the open market in recent weeks at a
total valuation of 200 million pounds.
The State Administration of Foreign Exchange, an arm of the central bank
that manages China's currency reserves, was also said earlier this year to have
built small stakes in oil giants BP and Total , Australia and
New Zealand Banking Group , Commonwealth Bank of Australia and
National Australia Bank .
($1=.5587 Pound)
(Reporting by Simon Rabinovitch; Editing by Ken Wills) Keywords: CHINA/DRAX
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