The Operation Management Of Sovereign Wealth Funds: International Comparison And Choice Of China

Sovereign wealth funds can be traced back to 1950s, but they have been neglected by academia. However, with the changes of the global economy structures, energy exporting countries and emerging market countries have accumulated a large amount of oil dollars and foreign trade surplus, from which the sovereign wealth funds received a lot of capital as funding sources, and their scale is increasingly growing. In recent years, sovereign wealth funds have performed very active in the international financial market and have had a profound impact on the global capital market and financial system, thus attracted wide attention of the international community.In September 2007, China set up our own sovereign wealth fund - China Investment Corporation. Because of its short history, CIC lacks corresponding theoretical guidance in operation management and overseas investment experience. Extensively studies on sovereign wealth funds have been taken by the international theoretical and practical communities, and have obtained some achievements, which provided a number of experiences for us. In order to learn from international experiences, this dissertation firstly divides sovereign wealth funds into Singapore model, Norway model and the Middle East model, according to the different characteristics that performed during the process of sovereign wealth funds operation management. Then we compare operation management of sovereign wealth funds from the aspects of corporate governance, asset allocation and risk management. By comparison, we find that sovereign wealth funds as financial institutions that manage national wealth and invest worldwide, not only have their own characteristics, but also have much in common. Based on the commons, we summarize an efficient mode of management operation , which is suitable for all countries. Finally, on the basis of this mode, we propose corresponding policy recommendations, combined with the specific environment in China, the characteristics and the deficiency of CIC.