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The Research On The Investment Strategy And Asset Allocation Of The Chinese Sovereign Wealth Fund (SWF)

Posted on:2011-06-25Degree:MasterType:Thesis
Country:ChinaCandidate:P WangFull Text:PDF
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Since 1953, the first sovereign wealth fund SWF has experienced 60 years development process, established by Kuwait investment committee. In 2008, during the global financial crisis, they were called "Fire Captain" by the US media for they invested in the Wall Street.China Investment Corporation (CIC), a representative of China's sovereign wealth fund was established on September 29th,2007 to maintain and increase the value of foreign exchange reserve. However, it was criticized for unsatisfied book profits of several outgoing investment. As it known to all, SWFs should choose investment strategy that suits themselves and asset allocation under the guidance of investment strategy. Based on this, this article has conducted the research to the Chinese SWF's investment strategy and the property disposition.This paper is divided into four parts for analysis and research:Chapter I:The introduction analyzes the significance and background of the study, reviews domestic and foreign theories and introduces the research idea.Chapter II:It is analysis and reference of the foreign SWFs. First, it is an overview of the definition, classification, size and development of the SWFs. And then it is analysis of Singapore and Norway's SWFs. Finally it points out the reference and inspiration to our country.Chapter III:It analyzes China's sovereign wealth fund's investment strategy. This paper explores and discusses China's sovereign wealth fund's investment strategy from three aspects domestic, foreign and government. It points out it is critical to adhere to the Portfolio Investment Strategy. To improve the efficiency of overseas investment, the Chinese government also should make the strategic.Chapter IV:It discusses three theories of asset allocation and asset allocation methods to guide the asset allocation in the investment company. And it also analyzes the investment status and the improvement on the shortage.The Chinese sovereign wealth fund is lacking capital operation or investment experience, due to short period establishment. Domestic strategic investment and foreign portfolio strategic investment were chosen due to national situation. However, I believe that this investment strategy is not suitable for China's sovereign wealth fund's long-term development. CIC strategy should be gradually changed, and the focus should be on foreign portfolio investment strategy. For overseas asset allocation, this article discusses three types of asset allocation theory and analysis of the pros and cons of them, explains the asset allocation methods, and proposes specific steps, which is the highlight and innovation of this article.
Keywords/Search Tags:sovereign wealth funds, investment strategy, asset allocation
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