NewChinese sovereign wealth fund CIC to raise overseas investment
Deputy general manager Qi Bin says it will be focusing on targets closely tied to Chinese economic development
China Investment Corporation (CIC), the sovereign wealth fund, is stepping up its overseas investment, focusing on targets closely tied to the country’s economic development.
Qi Bin, CIC’s deputy general manager, revealed the move, while speaking at the private equity firm Hony Capital’s annual general meeting in Shenzhen on Monday.
“This will be the future trend for CIC. Any investment must be closely tied to Chinese industry and serve in its economic transition ,” he said.
A gradual integration of Hong Kong, Shanghai and Shenzhen will create a market that is abreast of the Wall Street, and that will help realise the modernisation of Chinese enterprise
China is hoping to encourage service sector growth, consumer spending and private entrepreneurship, and is directing investment away from infrastructure projects.
State-owned CIC was established in 2007 to diversify China’s foreign exchange holdings with registered capital of US$200 billion. It now manages over US$810 billion assets including US$200 billion of overseas assets, Qi said.
Returns from the sovereign wealth fund’s overseas portfolio fell 2.96 per cent in US dollar terms last year, due to volatilities in international financial markets and foreign exchange losses triggered by an appreciating US dollar, according to CIC’s annual report for 2015.
The organisation closed its representative office in Toronto in December, its only foreign representative office at that time, amid the slump of commodities price, but set up a New York office the same month.
Qi said CIC now plans to “dynamically” adjust its investment mix between public equity, direct investment and alternative investment such as hedge funds, and strengthen its ability to make direct investments.