Sovereign wealth fund operator State Administration of Foreign Exchange, which manages most of China's foreign exchange reserves, has acquired a 1.6% stake in the French integrated energy major Total for $2.8 billion, according to the Financial Times.

The Financial Times reported that the State Administration of Foreign Exchange (Safe) has initiated the process of building a stake in Total several months earlier. Safe also operates China’s central bank.

The acquisition of the stake by Safe has reportedly been carried out under the full purview of Total’s management and Safe’s representatives, according to the news source.

The Financial Times noted that, Safe conventionally invests its funds in treasury bonds and mortgage-backed securities. The weakening US dollar has reportedly made it imperative for Safe to diversify its portfolio.