Font Size: a A A

Regulation Of Investment Risk Of Sovereign Wealth Fund

Posted on:2014-08-10Degree:MasterType:Thesis
Country:ChinaCandidate:J WangFull Text:PDF
GTID:2266330422963906Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Sovereign Wealth Funds (SWFs) is established by the foreign exchange reserves or commodity export earnings of the national central government, the main purpose of which is seeking capital, has standardized market-oriented and specialized operating mechanism, and the operator places of which is usually overseas. The massive rise of SWFs precisely catch up with the the double trough moment of the world financial crisis and the debt crisis in Europe, countries become very subtle attitude of SWFs:On the one hand, the countries hope to stimulate large-scale investment and their economies by SWFs, on the other hand, they worry about the lack of transparency of sovereign wealth fund investment with a political purpose, to control too much to accept the country’s strategic industries.China Investment Corporation (CIC), established at this particular moment, has carried out multiple external investment with its registered capital of200billion U.S. Dollars. CIC invests primarily in the equity, fixed income and alternative asset. But the past five years, CIC’s investment suffered the community questions, and its asset position is still at a loss. In order to reverse the situation of China’s SWF losses and increase the value of foreign exchange assets, we should be in-depth analysis of China’s SWF investment risk, learn successful foreign legislative experience, and come up with strategies and recommendations.From the legal point of view, this article penetrates to analyze the China’s SWF investment risk, and conducts a comparative law study for the results, then puts forward some suggestions for the analysis. At the beginning the article summarizes the basic theory of SWFs, including the definition, the generation, the development and the characteristics of china’s SWF. Then the article carefully screenings the SWFs investment risk, and maks a presentation of the risk characteristics. The third part introduces the international regulatory legislation for the SWFs, focusing on the provisions of the "Santiago Principles" on sovereign wealth fund investment risk; and describes the current risk control methods of other sovereign wealth funds from four aspects of the operational risk, including credit risk, market risk, country risk, legal risk, for the risks identified in the second chapter. At last proposes legislation and policy recommendations from the risk of internal control, external control, and the risk of liability for the status of China’s SWF.
Keywords/Search Tags:SWFs, Investment Risk, Risk Control, Santiago Principles
PDF Full Text Request
Related items