Speculation that Beijing will inject more cash into China Investment Corp intensified yesterday after an official with the mainland's US$200 billion sovereign wealth fund suggested that talk of an increase was well-founded. Peng Junming, an official with the CIC's asset allocation and strategic research department, told an academic forum in Beijing that he had heard that the central government would give more money to the fund but was unaware of the size of the injection, according to Reuters. His remarks echoed recent mainland media reports that said Beijing would probably transfer an additional US$200 billion in capital from the country's massive foreign exchange reserve to the CIC, seeking to tap overseas investment opportunities. 'Conditions have been ripe for the recent resumption in CIC's overseas investments - both in terms of global investment opportunity and the quickening pace of China's foreign reserves accumulation,' said Jing Ulrich, the chairman of JP Morgan's China equities and commodities business. 'Any injection of new funds would constitute a vote of confidence from the Chinese authorities, in view of its strong financial performance over the past year.' The worldwide recession has deterred the country's sovereign wealth and national pension funds from aggressively investing in overseas market since 2008. The stabilising of global markets late last year prompted Beijing to direct more capital outflows as it attempted to ease inflationary pressure on the domestic market and cool speculation on a strengthening yuan. China has the world's largest foreign exchange reserve of US$2.3 trillion with holdings of US$763.5 billion in United States treasury bonds. Some government officials and economists have called on the government to diversify the foreign exchange stockpile due to a weakening US dollar. The CIC started to take more aggressive steps in overseas investment late last year, concluding a series of high-profile deals including a US$2.15 billion stake purchase in US power company AES Corp. In the past two years, the CIC had enhanced its staff with experienced professionals, and developed an operational framework to allow it to invest across a broader range of asset classes, Ulrich said. In December, Dai Xianglong, the chairman of the National Social Security Fund, said Beijing had allowed the pension fund to invest as much as 20 per cent of its assets in overseas stocks and funds, up from a cap of 7 per cent.