Shearman & Sterling LLP is representing China Investment Corporation (CIC) in its agreement to acquire a 40% stake in CITIC Capital Holdings Ltd (CITIC Capital).

CIC is a sovereign wealth fund that manages the foreign exchange reserves of the People's Republic of China. It was established in September 2007 with US$200 billion of assets under management. CITIC Capital, a China-focused investment management and advisory firm, manages $2 billion through a variety of alternative-investment platforms.

The transaction is subject to the approval of the Hong Kong Securities and Futures Commission and other customary closing conditions. It is expected to close in the fourth quarter of 2009.

Partner Lee Edwards (Beijing-M&A) is leading the Shearman & Sterling team, assisted by counsel Lorna Xin Chen (Hong Kong–Asset Management) and associates Denise Ho (Hong Kong-M&A), Maggie Guan (Hong Kong-M&A), Sara Chin (Hong Kong-Capital Markets) and Nidia Wang (Hong Kong-M&A).