China Investment Corporation (CIC)’s overseas investments hit a record high of 17.59 percent net return denominated in USD, according to the annual report 2017 of CIC which released on Monday.
According to the report, by the end of 2017, CIC's overseas investments had generated a net cumulative annualized return of 5.94 percent.
Based in Beijing, the total assets of CIC, the country's sovereign wealth fund surpassed $941.4 billion as of December, 2017, which translated into a cumulative annualized growth rate of the state-owned capital had reached 14.51 percent.
Tu Guangshao, Vice Chairman and President of CIC, said that In terms of scale, it is equivalent to re-creating three CIC companies after ten years' development.
CIC, founded in 2007 with a registered capital of $200 billion, is a wholly state-owned vehicle that helps diversify China’s foreign exchange holdings and seek maximum returns for its shareholders within acceptable risk tolerance.
43.6 percent of CIC's overseas investment was in public equities by the end of 2017, followed by alternative assets, fixed incomes, cash and others, the report said. Around two-thirds of the investment was externally managed.
Moreover, talking about the domestic equity, CIC said that by the end of 2017, state-owned financial capital under Central Huijin's management had reached 4.1 trillion yuan (about $619 billion) the total assets of Central Huijin's holding companies were 112 trillion yuan, representing a year-on-year growth of 8 percent.
“This year marks the 40th anniversary since China embarked on its economic program of reform and opening-up. For CIC, it will be the juncture for journeying into its second decade,” Tu said.
“To thrive and prosper, CIC will advance new development plans, build institutional capacity, and implement new ways for outbound investment and state-owned financial capital management.”