Ding Xuedong was appointed as head of China's sovereign wealth fund. He was the former deputy secretary general of the State Council. The appointment was made at a time when the prospect of the Federal Reserve reduced stimulus has roiled global markets.

Ding succeeded Lou Jiwei after his appointment as finance minister more than three months ago. This was stated by China Investment Corp's (CIC) chairman on their website today. The announced appointment ended numerous speculations on who would take over the helm of the US$482 billion fund.

CIC boosted holdings of resources related companies under Lou's tenure. The fund also bolstered long term portfolio and private equity assets. Ding faces the prospect of increasing interest rates after Fed Chairman Bernanke said bond acquisitions that have buoyed assets globally may be halted in 2014. As of December 31, 2011, North America was accounted 44% of CIC's diversified equity investments. This was according to the fund's latest annual report.