While France, Germany and the United States debate what to do about deep-pocketed sovereign funds, China has seen the value of its stake in the world's largest private equity fund slump.
While Blackstone doubled profits in the first quarter and the funds it manages have recorded 20 per cent to 30 per cent annual returns since the firm's inception, China has not been so fortunate in its Blackstone investment.
The central government paid US$3 billion for just under 10 per cent of Blackstone Group as part of the firm's initial public offering.
The purchase was made through the State Investment Co, which paid US$29.605 a share, a slight discount to the US$31 initial offering price.
Since last month's offer, however, the share price has struggled. Blackstone closed last week at US$24.30 in New York.
That represents a 17.9 per cent fall for China's US$3 billion stake, based on the US$29.605 it paid for its non-voting stake in the group. It is down 21.6 per cent on the initial offering price.