Research On The Investment Operation Of The Chinese Sovereign Wealth Fund

Since the1990s, Sovereign wealth had entered a stage that developed rapidly. Many nationalities, including South Korea, Russia and Norwegian, had all set up its own sovereign wealth fund. It has occupied an ever-increasing attention across the world with the expanding of its total value and scale. China had set up its own sovereign wealth fund, named China Investment Corporation, of which the registered capital is200billion dollars on September22,2007. Shortly after that, it immediately suffered a great paper losses in the process of investing in the company of Blackstone. Lacking of the practice in international investment and questioned by many scholars and experts of its Investment strategy, this organization is under huge pressure as the investment climate increasingly become worse.After world financial crisis in2008, the investment strategy of Chinese sovereign wealth fund is facing great test under the negative effect of economic weakness in the United States and the European debt crisis while world’s economic is stroked strongly. Hence, it is of great significant to have a deep investigation on its operation status of investment, learned from experiences of other countries, and then, give out related advices.This paper, with the sovereign wealth fund as its main research object, sum up many related theories initially, and summarize the development and present situation of global sovereign wealth. After comparing famous companies which work on the operation of such fund such as Temasek Holdings in Singapore and the Government Pension Fund in Norwegian, analyzing the present behaviors of our country, and drawing experiences from other success cases, we finally give out deep operating suggestions of China Investment Corporation.