The Study Of Investment Operation Mechanism Of Sovereign Wealth Funds Under The Post Financial Crisis Era

From the latter part of the 20th century, economic globalization and financial liberalization have been deepening, while global foreign reserves have imbalanced as international monetary system has been transforming, emerging markets'surplus have been increasing, and the energy prices have been soaring. With these reasons, sovereign wealth funds (SWFs) gets a rapid expansion. The statistic of SWF Institute shows that the asset of the global sovereign wealth funds has reached 4.2 trillion US dollars till March in 2011 and would keep the increasing trend, exceeding the asset of the hedge funds and private equity funds. The asset of China Investment Corporation (CIC) has reached over 300 billion US dollars in three years since 2007.During the global financial turmoil, the global sovereign wealth funds, one of the most important institutional investors, have played an active role and injected liquidity into home and global financial markets. The issue that how to invest and operate the huge asset in global market' scale becomes more and more concerned.Based on reviewing the professional literatures at home and abroad, this paper deeply explores the theories basis of the operation and investment strategies of SWFs, after analyzing the reasons and effects of the rise of SWFs, with the method from common to special analysis. Combined with the background of global financial crisis, it analyzes the performance and effects of the SWFs. Then it states the current status and prospects of CIC, and illustrates the challenges and opportunities of CIC during the post financial crisis era. In the latter part, the paper discusses the existing problems of CIC, on the basis of theoretical analyzing of investment operation mechanism and studying the investment management experience from the excellent SWFs. Finally, the paper provides several suggestions on the future invest and operation of CIC, including setting up the philosophy of market operation; perfecting the corporate governance on diversification and efficiency; implementing the professional and flexible investment strategies; establishing the risk management system; and optimizing professional talent management mechanism.