Speculation intensified yesterday that sovereign wealth fund China Investment Corporation would take a stake in property group Goodman Group before the end of the month.

The rumours lifted the share price 3.5% in early trading before the stock closed 0.5c lower at 42c.

CIC lent Goodman $200m last month in a debt and options financing facility.

But CIC would not be the first sovereign fund to take a strategic stake in an Australian asset.

According to a McKinsey Global Institute report, there is a redistribution of wealth and power taking place from western economies to other economies.

It says that despite the global financial crisis, sovereign wealth funds and petrodollar investors are gaining in strength and, together with private-equity and hedge funds, are worth a massive $US12.1tr ($15.5tr), compared with $US25tr for pension funds.

The Australian