Industry Investment service Total assets 813.8 billion USD (2015) Type of business Sovereign wealth fund | Website www.china-inv.cn Number of employees 467 (2013) Founded 2007 Net income 73.94 billion USD (2015) | |
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Operating income Total equity US$ 724.742 Billion (2015) Subsidiaries Central Huijin Investment | ||
Exclusive interview with president of the china investment corporation mr gao xiqing
China Investment Corporation (CIC) (Chinese: 中国投资有限责任公司; pinyin: zhōngguó tóuzī yǒuxiàn zérèn gōngsī) is a sovereign wealth fund responsible for managing part of the People's Republic of China's foreign exchange reserves. CIC was established in 2007 with approximately US$200 billion of assets under management. At the end of 2014, the CIC had over US$740 billion in assets under management.
Contents
- Exclusive interview with president of the china investment corporation mr gao xiqing
- China investment corporation speculation
- History
- Governance
- Board of Directors
- Board of Supervisors
- Executive Committee
- International Advisory Council
- Subsidiaries and minority interests
- References
China investment corporation speculation
History
As of 2007, the People's Republic of China has US$1.4 trillion in currency reserves, while this had grown by 2013 to US$3.44 trillion. The China Investment Corporation was established with the intent of utilizing these reserves for the benefit of the state, modeled according to Temasek Holdings of Singapore. The state-owned Central Huijin Investment Corporation was merged into the new company as a wholly owned subsidiary company.
Special national debt bonds were issued to create the capital that the CIC needed. 1,550.35 billion yuan ($207.91 billion) was issued in this bond sale. The bond process was completed in December 2007. According to Lou Jiwei, the CIC needs to make a profit of 300 million Yuan every day just to pay the interest on the bonds and operation costs. The CIC paid its first interest on the bonds in February 2008 where it paid 12.9 billion yuan.
In 2008, CIC joined the International Forum of Sovereign Wealth Funds and signed up to the Santiago Principles on best practice in managing sovereign wealth funds.
In 2010, CIC established a new subsidiary, CIC International (Hong Kong) Co in Hong Kong and appointed Lawrence Lau as its Chairman.
In 2011, CIC established its first foreign office in Toronto, choosing it over financial centres such as New York or London as its first office. Felix Chee will be the chief representative officer
In September 2013, the fund acquire a 12.5% stake in Russian potash fertiliser company Uralkali for a rumoured $2 billion.
In March 2014, the CIC acquired a $40 million stake in iKang Health Group. In October 2015, the CIC provided capital in a deal between Carnival Corporation and China State Shipbuilding Corporation
In January 2017, acquired a 45% stake in 1221 Ave. of the Americas, NYC which values the building at $2.3 billion.
Governance
The management and board of the China Investment Corporation ultimately reports to the State Council of the People's Republic of China. The China Investment Corporation is seen as being "firmly entrenched" in the political establishment as the composition of its Board of Directors implies "considerable influence on the part of China’s Ministry of Finance."