China Investment Corporation
The China Investment Corporation (CIC) (Chinese: 中国 投资 责任 公司; Pinyin: zhōngguó tóuzī yǒuxiàn zérèn gōngsī) is a state-owned wealth fund based in Beijing that is responsible for managing part of the foreign exchange reserves of the People's Republic of China . End of 2017, the CIC had assets under management of over 941 billion US dollars , making it the second largest sovereign fund in the world.
In 2013 the fund had 467 employees. The managing director has been Ding Xuedong since 2013 .
history
In 2007, the People's Republic of China had currency reserves of $ 1.4 trillion. China Investment Corporation was founded in 2007 with the intention of using these reserves for the benefit of the state, modeled after Temasek Holdings of Singapore or Norway's pension fund . The state-owned Central Huijin Investment Corporation was merged with the new company as a wholly owned subsidiary. CIC started in 2007 with an initial capital of $ 200 billion. In order to increase this capital, special national bonds were issued. The bond sale raised 1,550.35 billion yuan (US $ 207.91 billion) and added to the fund.
In 2018, the fund's capital had grown to over $ 900 billion. The annual return since inception has been 5.94%.
structure
The fund consists of a board of directors , a supervisory body, an executive committee and an international advisory body.
The management and board of directors of the China Investment Corporation ultimately report to the State Council of the People's Republic of China . The China Investment Corporation is seen as "firmly anchored" in the political establishment as the composition of its board of directors implies "significant influence from the Chinese Ministry of Finance". Some people from government circles have made large fortunes thanks to the fund.
Investments
The aim of the investments is to generate long-term income for the Chinese state and to promote its international economic interests. The fund also makes targeted investments in foreign companies in order to shape their investment policy and to access foreign capital and knowledge. In 2017 approximately 50% of the capital was invested in the United States . In addition to stocks and bonds , the fund also invests in real estate .
CSSC Carnival Cruise Shipping , a joint venture between CIC, China State Shipbuilding Corporation and Carnival Corporation & plc , was founded in October 2015 and is expected to begin operations in 2019. The CIC had provided the capital.
In 2017, the CIC bought the European logistics company Logicor from the Blackstone Group for a price of 12.3 billion US dollars .
In November 2017, the CIC and Goldman Sachs announced investments of $ 5 billion in the US industrial sector.
Web links
- Official website (in English)
Individual evidence
- ↑ 2017 Annual Report. Retrieved March 24, 2019 .
- ↑ China Business: "China's quintillion-dollar kitty is ready" , Asia Times , October 2007
- ^ Douglas Appell, Douglas Appell: China Investment Corp. reports 17.6% gain on overseas investments. July 9, 2018, accessed March 24, 2019 .
- ↑ A Review of Chinese-Language Literature on Sovereign Wealth Funds ( Memento of the original from September 23, 2008 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. . - Oxford International Review. - (Adobe Acrobat * .PDF document)
- ↑ Guide: Far East banking: The China Investment Corporation | wallstreet: online. Retrieved March 24, 2019 .
- ^ China firms, Carnival Corp form JV to launch Chinese cruise line . Reuters. October 21, 2015.
- ^ Costa Atlantica and Mediterranea Sold to New Chinese Brand . Cruise Industry News. November 6, 2018.
- ^ China Investment Corporation. Retrieved March 24, 2019 .
- ↑ Pensions & Investments: China's $ 930 billion fund seeks more stable returns in shift to alts. March 15, 2018, accessed March 24, 2019 .
