China's Wealth Fund Posts Its Best Annual Performance, Hungry for More US Stakes
Liao Shumin
DATE:  Jul 09 2018
/ SOURCE:  Yicai
China's Wealth Fund Posts Its Best Annual Performance, Hungry for More US Stakes China's Wealth Fund Posts Its Best Annual Performance, Hungry for More US Stakes

(Yicai Global) July 9 -- China Investment Corp., the country's USD941 billion sovereign wealth fund, posted its best annual performance in its decade-long history, boosted by record-high returns from its overseas portfolio.

Profit rose 38 percent to USD104 billion from a year ago, CIC said, adding that overseas investment surged 18 percent. The Beijing-based fund, founded in 2007, helps China earn a higher return on its foreign exchange reserves and holds heavy stakes in China's biggest banks.

The wealth fund hopes to invest more in US markets, CIC President Tu Guangshao said at a press conference in Beijing, adding that the current trade tensions should not affect its goals. Last December, CIC already held 52 percent of its offshore investments in the US.

The strength of the fund's overseas investment targets pushed its annualized accumulative investment return to 5.94 percent for the decade prior to last year, which exceeded the fund's target. CIC's total investment income, including domestic gains, was USD114 billion, versus USD83 billion in 2016.

CIC invests overseas through two units, CIC International and direct investment vehicle CIC Capital. The fund has invested in firms such as online housing firm Airbnb and Canadian mining company Teck Resources.

CIC's domestic unit Central Huijin Investment, has invested directly to 17 Chinese state-owned financial institutions, including China Construction Bank and Agricultural Bank of China.

Editor: Emmi Laine 

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Keywords:   China Investment Corp.,Annual Report,Overseas Investment,Central Huijin Investment,Sovereign Wealth Fund,Forex,Public Investment