China Investment Corporation (CIC) ( Chinese: 中国投资有限责任公司;

pinyin Hanyu Pinyin (), often shortened to just pinyin, is the official romanization system for Standard Mandarin Chinese in China, and to some extent, in Singapore and Malaysia. It is often used to teach Mandarin, normally written in Chinese fo ...

: ''zhōngguó tóuzī yǒuxiàn zérèn gōngsī'') is a

sovereign wealth fund A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as ...

that manages part of the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...

foreign exchange reserves Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence ...

. China's largest sovereign wealth fund, CIC was established in 2007 with about US$200 billion of assets under management, a number that grew to US$941 billion in 2017China Investment Corporation Annual Report 2017
/ref> and US$1.2 trillion in 2021.

History

As of 2007, the People's Republic of China has US$1.4 trillion in currency reserves. (By 2013, US$3.44 trillion.China Investment Corporation Profile
Sovereign Wealth Fund Institute. July 2, 2008. Retrieved August 27, 2013.) The China Investment Corporation was established with the intent of using these reserves for the benefit of the state, modeled according to

Temasek Holdings Temasek Holdings (Private) Limited, or simply Temasek, is a Singaporean state holding company owned by the Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in assets u ...

of Singapore. The state-owned Central Huijin Investment Corporation was merged into the new company as a wholly owned subsidiary company.China Business
"China's trillion-dollar kitty is ready"
''

Asia Times ''Asia Times'' (), formerly known as ''Asia Times Online'', is a Hong Kong-based English language news media publishing group, covering politics, economics, business, and culture from an Asian perspective. ''Asia Times'' publishes in English and ...

'', October 2, 2007. In May 2007 it was reported that CIC was to buy a $3 billion stake in the

Blackstone Group Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate bu ...

. Special

national debt A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...

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 Lou Jiwei (; born December 1950), is a Chinese politician, and current director of the 13th CPPCC Foreign Affairs Committee. Lou was Chairman of China's National Council for Social Security Fund, Minister for Finance, Chairman of China Investm ...

, the CIC needs to make a profit of 300 million Yuan every day just to pay the

interest In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distin ...

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 The International Forum of Sovereign Wealth Funds (IFSWF) is a nonprofit international group of sovereign wealth funds managers which was established in 2009. It is based in London, England. History In 2009, a group of 23 leading state-owned ...

and signed up to the

Santiago Principles The Santiago Principles or formally the Sovereign Wealth Funds: Generally Accepted Principles and Practices (GAPP) are designed as a common global set of 24 voluntary guidelines that assign best practices for the operations of Sovereign Wealth Fun ...

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 Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the anch ...

, 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

Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...

potash Potash () includes various mined and manufactured salts that contain potassium in water- soluble form.

fertiliser company

Uralkali Uralkali ( rus, Уралка́лий, p=ʊrɐɫ'kalʲɪj) is a Russian potash fertilizer producer and exporter. It is traded on the Moscow Exchange using the symbol, URKA. The company’s assets consist of five mines and seven ore-treatment mills ...

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 October 2015,

CSSC Carnival Cruise Shipping Adora Cruises (CSSC Carnival Cruise Shipping) is a Chinese-British-American cruise line that was scheduled to begin operation in 2020, but was delayed due to COVID-19 pandemic. History CSSC Carnival was founded in October 2015 as a joint venture, ...

, a joint venture between the CIC, the

China State Shipbuilding Corporation The China State Shipbuilding Corporation (CSSC) is a Chinese shipbuilding conglomerate. Description CSSC is one of the top 10 defence groups in China. It consists of various shipyards, equipment manufacturers, research institutes and shipbu ...

, and

Carnival Corporation & plc Carnival Corporation & plc is a British-American cruise operator with a combined fleet of over 100 vessels across 10 cruise line brands. A dual-listed company, Carnival is composed of two companies – Panama-incorporated, US-headquartered Carniv ...

, was founded, with operations expected to commence in 2019. In January 2017, acquired a 45% stake in the office skyscraper 1211 Avenue of the Americas,

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

, which valued the building at $2.3 billion. In November 2017, China Investment Corp. purchased Logicor, a European warehouse company, from

The Blackstone Group Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate b ...

L.P. for $13.49 billion. Other companies were also bidding for Logicor.

Governance

The management and board of the China Investment Corporation ultimately reports to the

State Council of the People's Republic of China The State Council, constitutionally synonymous with the Central People's Government since 1954 (particularly in relation to local governments), is the chief administrative authority of the People's Republic of China. It is chaired by the pr ...

. 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."

Board of Directors

*Chairman & CEO -

Peng Chun Peng may refer to: * Peng (surname) (彭), a Chinese name * Peng (state) (大彭), a state during the late Shang dynasty * Peng (mythology) (鵬), a legendary Chinese creature * ''Peng!'', 1992 album by Stereolab * ''PENG!'', a 2005 comic * P.Eng. ...

*Vice Chairman, President & CIO - Ju Weimin *Executive Director, Executive Vice President & COO - Shen Rujun *Non-Executive Director -

Ning Jizhe Ning Jizhe (; born December 1956) is a Chinese economist and senior official currently serving as the director of the National Bureau of Statistics of China and Vice Chairman of the National Development and Reform Commission (minister-level rank) ...

*Non-Executive Director - Zou Jiayi *Non-Executive Director - Ren Hongbin *Non-Executive Director - Lui Guiping *Non-Executive Director - Lu Lei *Independent Director - Li Jiange *Independent Director - Bai Chong'en *Employee Director - Fan Yong

Board of Supervisors

*Chairman of Board of Supervisors - Hu Hao *Supervisor - Qin Boyong *Supervisor - Xiao Yuanqi *Supervisor - Yan Qingmin *Employee Supervisor - Cui Guangqing

Executive committee

*Chairman & CEO -

*Vice Chairman, President & CIO - Ju Weimin *Chairman of Board of Supervisors - Hu Hao *Executive Director, Executive Vice President & COO - Shen Rujun *Executive Vice President & Deputy CIO - Guo Xiangjun *Executive Vice President & Deputy CIO - Qi Bin *Chief Inspector - Pan Yuehan *Executive Vice President & CSO - Zhao Haiying *Executive Vice President & CRO -

Liu Haoling / ( or ) is an East Asian surname. pinyin: in Mandarin Chinese, in Cantonese. It is the family name of the Han dynasty emperors. The character originally meant 'kill', but is now used only as a surname. It is listed 252nd in the classic text ...

*Member of the Executive Committee - Bao Jianmin *Member of the Executive Committee - Liu Yanbin *Member of the Executive Committee - Xu Zhinbin

International Advisory Council

; Asia * Zeng Peiyan (China) *

Shaukat Aziz Shaukat Aziz ( ur, ; born 6 March 1949) is a Pakistani former banker and financier who served as 17th prime minister of Pakistan from 28 August 2004 to 15 November 2007, as well as the finance minister of Pakistan from 6 November 1999 to 15 ...

(Pakistan) *

Justin Yifu Lin Justin Yifu Lin (; born on October 15, 1952) is a Chinese economist and professor of economics at Peking University. He served as the Chief Economist and Senior Vice President of the World Bank from 2008 to 2012. He has been appointed as China S ...

(China) *

Frederick Ma Frederick Ma Si-hang is a Hong Kong politician and administrator who was chairman of the MTR Corporation from 2015 to 2019. As a former Secretary for Commerce and Economic Development of the Hong Kong Special Administrative Region, he was ...

(Hong Kong, China) * Yingyi Qian (China) * Andrew Sheng (Malaysia) *

Joseph Yam Joseph Yam Chi-kwong, GBM, GBS, CBE, JP (任志剛; born 1948, Hong Kong) is a Hong Kong statistician, economist and civil servant. He was the first Chief Executive of the Hong Kong Monetary Authority, Hong Kong's ''de facto'' central bank, ...

(Hong Kong, China) ; Africa * Omari Issa (Tanzania) * John H. Maree (South Africa) ; Americas * David Denison (Canada) * Merit E. Janow (United States of America) * Jorge Paulo Lemann (Brazil) *

John J. Mack John J. Mack (born November 17, 1944) is a senior advisor to the investment firm Kohlberg Kravis Roberts and the former CEO and chairman of the board at Morgan Stanley, the New York-based investment bank and brokerage firm. Early life and edu ...

(United States of America) * John L. Thornton (United States of America) ; Europe * Knut N. Kjaer (Norway) * Jean Lemierre (France) ; Oceania * Peter Howard Costello (Australia)

Subsidiaries and minority interests

* GDF Suez Exploration & Production International SA (30%; joint venture with Engie)

References

External links

* {{authority control Sovereign wealth funds Chinese companies established in 2007 Government-owned companies of China Companies based in Beijing Financial services companies established in 2008