The Chinese media have reported that China Investment Corporation - the company responsible for managing part of China's foreign exchange reserves - is considering the formation of a joint venture with major steel mills in the country in order to make an offer worth $200 billion for the takeover of Anglo-Australian mining giant Rio Tinto.
However, China Investment Corporation has said in response that such reports were only rumors. Furthermore, officials from the China Iron & Steel Association (CISA) and major Chinese mills said they were unaware of such reports.
Market sources indicate that China Investment Corporation had already been planning to obtain a stake in BHP Billiton earlier this year, and that such a move for Rio Tinto may have come onto the agenda due to BHP's recent offer to acquire Rio Tinto.