The Rationality To Construct Commodity Reserve By China Investment Corporation And Advice On Execution

The foundation of China Investment Corporation on September,2007 signals the beginning of China's active management to its foreign reserves. Confronting with many political and economic difficulties ,the investment orientation of China Investment Corporation is much more complex than the similar foreign reserves management institutions abroad. Securing a rational investment orientation and discussing the specific execution of it ,which not only ensures the stability and appreciation of the foreign reserves ,but also serves the macro-economy of China, is an urgent and important issue. The commodity reserve is the most frequently suggested investment orientation. Thus it is valuable and meaningful both in theory and practice to prove the rationality to invest in the commodity reserve by China Investment Corporation and analyze the specific execution.Initially, the dissertation analyzes the present situation of China Investment Corporation. Then the dissertation introduces the experience of Singapore ,Norway and Korea, and discusses their significance to China and reaches the conclusion of its three important investment objectives: hedging the future systematic risk of China's macro-economy; helping the reconfiguration of the industries and improving the competiveness of Chinese enterprises ; securing higher repay of the foreign reserves. According to these three investment objectives , the dissertation proves that the foundation of the commodity reserve is a rational investment way systematically meeting with the investment objective series of China Investment Corporation. In the end ,the dissertation discusses the phyletic structure ,founding way ,risk management and achievement scale of the commodity reserve, and puts forward some suggestions on these aspects.