China Investment Corp., or CIC, the Chinese government's investment division, is in talks on taking a minority stake in power-plant developer and utilities operator AES Corp. (AES), the Wall Street Journal reported Monday, citing people familiar with the matter.
The possible deal, which is part of a wide-ranging discussion aimed at building an alliance between AES and CIC, could result in CIC taking a significant stake in Arlington, Virginia-based AES, which has a market capitalization of about $9.5 billion, the report noted. CIC, China's sovereign wealth fund, has some $300 billion in assets.
In addition, the two parties reportedly are in talks about a joint venture between them, in which CIC would contribute capital to AES' plans to develop power plants around the world.
AES' about two-thirds of investments are in the power-generation business and one third in utilities. The company owns 14 utilities that serve 11 million customers, including customers in Indianapolis.
AES has a significant power-plant development business, however, it has had little presence in China, one of the fastest-growing markets. The company has about 200 megawatts of wind-generating capacity under construction in China, half-owned by a Chinese partner, Guohua Energy.
CIC's move is seen as part of China's growing interest in diversifying its $2 trillion in foreign-currency reserves. CIC and other Chinese state-controlled companies recently have bought assets around the world, including oil-and-gas producers, stakes in U.S. financial companies Blackstone Group LP (BX) and Morgan Stanley (MS), and a large position in Canadian miner Teck Resources Ltd.
AES closed Friday's regular trading session at $14.15, up $0.01 or 0.07%, on a volume of 4.2 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.