CIC Re­port

Beijing Review - - This Week Economy -

To­tal as­sets of China In­vest­ment Corp. (CIC), the na­tion’s sov­er­eign wealth fund, sur­passed $900 bil­lion in Au­gust.

The fig­ure is more than triple the orig­i­nal cap­i­tal of $249 bil­lion when the fund was founded a decade ago. It has be­come the world’s se­cond largest sov­er­eign wealth fund, only af­ter the Gov­ern­ment Pen­sion Fund of Nor­way, whose as­sets reached $1 tril­lion in Septem­ber.

CIC has gen­er­ated an an­nual re­turn of 14.35 per­cent, with that from over­seas in­vest­ment at 5.51 per­cent.

“Com­pared with other fi­nan­cial in­sti­tu­tions, our biggest ad­van­tage is that we are backed by the Chi­nese mar­ket,” CIC’s Gen­eral Man­ager, Tu Guang­shao, said.

By the end of 2016, al­most half of CIC’s over­seas in­vest­ment was in pub­lic eq­ui­ties, fol­lowed by al­ter­na­tive as­sets, fixed in­come in­stru­ments, cash and other ve­hi­cles. Around two thirds of the in­vest­ment was ex­ter­nally man­aged.

Tu said CIC’s growth in the next 10 years will de­pend on its ef­forts to in­vest in China’s eco­nomic trans­for- ma­tion and push for­ward its global march.

“CIC will de­vote it­self to serv­ing as a bridge link­ing busi­nesses and mar­kets at home and abroad,” Tu said.

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