Book yield of CIC's 2009 overseas investments exceeds $10 bln

16:21, March 08, 2010      

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China Investment Corporation (CIC), the nation's sovereign wealth fund, sped up the pace of overseas investments in 2009 when the global financial market had improved, gaining a full-year of unaudited overseas investment book yield of more than 10 billion U.S. dollars, said Yu Zheng, an official of CIC's overseas investment.

According to the CIC 2008 Annual Report, the Central Government had allocated 200 billion U.S. dollars of capital in cash to CIC, and the overseas investment quota occupied a little more than 50 percent of the total, "about 110 billion U.S. dollars," said Yu. Currently, CIC uses almost the entire quota. In view of this, the rate of return, CIC's 2009 global portfolio may exceed 10 percent, while in 2008, the figure was -2.1 percent.

CIC only invested over 10 billion U.S. dollars abroad in 2008, but it quickened the pace of overseas investments in 2009, mainly thanks to the increasingly improving international market, Yu said.

"CIC intentionally slowed down the pace of investments in 2008 as a result of the dangerous situation, and had 96 billion U.S. dollars left in banks by the end of 2008," he said, "cash became the most valuable asset in 2009."

CIC drafted 2 sets of investment programs according to the market situation in early 2009, but the central banks of many countries gradually reduced the interest rates to nearly zero. Thus, the corporation kept accelerating asset allocation, considering that "it would be so uneconomical to just leave cash in banks."

Public information shows that CIC has successively invested in North America, Southeast Asia, Central Asia, and Russia since the second half of 2009, and its huge investments in the energy sector have drawn wide attention.

Regarding the 2010 global economic climate, Wang Jianxi, member of the 11th National Committee of the CPPCC and deputy general manager of CIC, said frankly, "the economic climate will be most complex. The market this year does not have a clear direction, and it will fluctuate within the specific limits."

By People's Daily Online
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