Font Size: a A A

Research On Investment Strategy Of China Investment Corporation

Posted on:2009-10-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y LuoFull Text:PDF
GTID:2189360242486364Subject:Business management
Abstract/Summary:PDF Full Text Request
There have been a steady increase in Chinese foreign exchange reserves these years caused by factors below:(1) the fast development of our national economy, and the favourable balance in international payment;(2) the impact of compulsory settlement and payment of exchange, and the system of tax reimbursement for export;(3) the inburst of foreign direct investment and speculative capital. The large amount reserves in excess of 1 trillion U.S. dollars indicates that China have a great capacity for international payment, and can influence world economy to a certain extent, however, excessive foreign reserves lead various risks to China. Therefore, it is high time we should reinforce the management of forex reserves and increase profitability beyond security and liquidity demand.In this background, our government decide to establish Sovereign Wealth Funds, namely China Investment Corporation, so as to introduce active method in managing forex reserves. Marking the reform of our forex system, CIC aims to expand channels and methods of forex investment, and to win greater benefit. Due to lack of experiences in capital operation and investment, CIC differs from other SWFs in that the former faces more complex and tough circumstances. So it is very important to research investment strategy on CIC.This paper describes the current situation of Chinese foreign exchange reserves by integrating theory with practice, and includes the background of CIC establishment. It discusses investment strategy suitable for CIC by means of Turth Analysis and SWOT Analysis, and then makes some suggestions. At the last part, this paper quotes performance appraisal in judge of the CIC investment strategy effect.
Keywords/Search Tags:Foreign Exchange Reserves, Sovereign Wealth Funds, Investment Strategy, Performance Appraisal
PDF Full Text Request
Related items