| The Sovereign Wealth Fund has been world’s attention, since Russia, South Korea and other countries established Sovereign Wealth Funds. Chinese government diverts some of reserves and sets up Sovereign Wealth Fund-China Investment Corporation (CIC) on September22,2007, in order to achieve diversification of foreign exchange assets investment and increase investment returns. However, when CIC sets up, it would face a rare financial crisis. Due to fault investment decisions, it suffered heavy losses. In2009, CIC adjusted its investment strategy to achieve profitability. However, there are still some problems and shortcomings with the potential risks.When the dollar continues to fall and a new round of European debt crisis is prevailing, CIC’s overseas investment will face both opportunities and challenges. But the challenge is much higher than the opportunity. Therefore, it is great significant to study the company’s overseas investment strategy to ensure the preservation and appreciation of foreign exchange assets.In this paper, we discuss CIC’s overseas investment Status and find that there are some problems of CIC’s overseas investment. Such as, governance structure is not clear, resource allocation structure is irrational, information disclosure is imperfect and so on. In depth analysis of the causes of the problem, learning from the successful investment experience of foreign Sovereign Wealth Funds (Temasek Holdings, GIC, GPFG), we use the strategic asset allocation theory, investment theory and Black-Litter man model to make some suggestions for chini’s Sovereign Wealth Fund, hoping to give a guide to it in the future. It includes clear investment goals, the implementation of a diversified investment, the improvement of the corporate governance structure and reward systems, the establishment of a rational performance appraisal mechanism, the found of comprehensive risk management system, and the reinforcement of international exchanges. |
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