Legal And Regulatory Issues Of China's Sovereign Wealth Fund Research

Under the background of our increasing foreign currency reserves, it appears urgent to resolve the excess liquidity and scatter the risk of massive foreign currency reserves. As a result, China settled up its first Sovereign Wealth Funds (SWFs)—China Investment Corporation (CIC).However, it is same with other SWFs, CIC confront with a lot of problems such as the supervision of host country and the concerns of the international country. In attempt to coordinate the relationship between the SWF and the host country, International Working Group of IMF and other SWFs worked together to make "Santiago Principle" to regulate the governance structure, information disclosure and risk management of SWFs. As the voluntary contracting state of "Santiago Principle", CIC has an obligation to improve itself according to the requirements of "Santiago Principle" to meet the regulatory requirements of international community and the host country.