Research On Risk Management Of China Sovereign Wealth Fund Based On Fuzzy Synthetic Evaluation

The first China sovereign wealth fund was set up by China using foreign exchange reserves on29th,9,2007--China Investment Corporation, abbreviation CIC, which is to invest in global capital market,increase the income level of foreign exchange reserves and achieve the purpose of increasing value offoreign exchange reserves. In2008, the outbreak of U.S. subprime mortgage crisis gathering Europeansovereign debt crisis casted a shadow to the global capital market and caused the investment of ChinaSovereign Wealth Fund facing unprecedented risk either, therefore, it is necessary to pay more attention torisk management.The main research work can be summarized as the following aspects:(1) Research on sovereign wealth fund at home and abroad. Through the research on sovereignwealth fund risk management of Singapore, Russia and Norway, Summed up their successful experience,as well as provide us some revelation for our sovereign wealth fund risk management which will be activeand useful and more valuable to the future development of China sovereign wealth fund. On this basis,we compare and analysis the status of China sovereign wealth fund risk management, In the meanwhilewe sum up the problems to be solved urgently of China sovereign wealth fund risk management accordingto macro-environment, risk control ability and the arrangement of organization structure.(2) Empirical research on construction of China sovereign wealth fund risk managementmodel. According to the risk characteristics of China sovereign wealth fund, this articleconstructs the fuzzy synthetic evaluation model and assess the level of risk faced by Chinasovereign wealth fund investment, besides to do empirical study by the Blackstoneinvestment. The result shows that the fuzzy synthetic risk assessment to analysis andmeasure the risks of investment decisions overcomes the limitation of other risk estimationmethods only judging single risk, to measure various risk factors of affection investmentdecision-making and determine more objective and rational results.(3) Based on the analysis of China Sovereign Wealth Fund Risk and Risk assessment,the article proposes the establishment of China Sovereign Wealth Fund Risk Early WarningSystem, monitor the characteristics and trends of risks to effectively preventive control, aswell as brings up relevant policy recommendation for managers of CIC.