Experience In Administration Of Global SWFs And Its Revelation To China

Chinese Sovereign Wealth Fund has stepped onto a new stage since China Investment Corporation was founded in September, 2007. At the beginning, CIC made several huge investments, which attracted extensive attention from International Community, especially those Western Countries. They were anxious about whether the investment of CIC was politically motivated and whether this would threaten the stability and safety of international financial order. However, compared with other mature SWFs being founded a long time ago, CIC, as a latter comer, still has a long way to go in terms of the scale and experiences of the investment. Therefore, CIC could learn from the management experiences of global Sovereign Wealth Fund.As new-emerging investors, SWFs did not get enough attention until recently. Then what are SWFs? What is the difference between SWFs and foreign exchange reserve? Is there any successful experience of SWFs operations that CIC could learn from? These are some questions we seek to address in this thesis.At the beginning, this thesis gives a clear definition of SWFs, the nature and characteristics, describes the development of SWFs, their scale and trends, and then analyzes three mature SWFs: GPFG, GIC and Temasek Holdings. Through studies on management system, investment strategy, risk control and performance assessment of the above three SWFs, we learn some investment strategies that would benefit CIC on the circumstances of global financial crisis. At the same time, this thesis analyzes the recent development and internal structure of CIC, combines the management experiences of GPFG, GIC and Temasek Holdings with the case of CIC and proposes some suitable management experiences for CIC and the reform directions of CIC.