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Briefing

China Investment Corporation

Critical Issues

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Background:

China’s sovereign wealth fund, the China Investment Corporation (CIC), was launched in 2007 with US$200 billion in capital in order to diversify some of the country’s foreign exchange reserves.  By the end of 2008, its assets had grown to US$298 billion, according to the fund’s first annual report. The CIC's stakes in Chinese financial institutions held by the funds subsidiary Central Huijin make up the bulk of these funds.  The CIC reports to the State Council, and in 2009 it set up an international advisory board.

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Associated Readings

Analysis Global Insight Aug 10, 2009 China's SWF in New Overseas Expansion Following 50% Asset Growth in 2008 Analysis RGE Monitor Rachel Ziemba Dec 16, 2008 Raiding the Sovereign Rainy Day Fund Analysis National Bureau of Asian Research July 2008 Understanding China’s New Sovereign Wealth Fund Research Mizuho Research Institute Takamoto Suzuki January 2008 The launch of China's sovereign wealth fund - long–term implications upon the global monetary regime and economic order Research Peterson Institute for International Economics Edwin M. Truman October 2007 The Management of China’s International Reserves: China and a SWF Scoreboard Analysis Peterson Institute of International Economics Edwin M. Truman Dec 17, 2008 The Management of China's International Reserves and Its Sovereign Wealth Funds Analysis Chinese Academy of Social Sciences Ming Zhang and Sarah Eaton November 2008 Dragon on a Short Leash: An Inside-Out Analysis of China Investment Corporation