A Brief Analysis Of Chinese Sovereign Wealth Fund’s Operation And Management

In recent years, Chinese foreign exchange reserves were growing very rapidly. In September 2007, Chinese sovereign wealth fund in the true sense came into being. China Investment Corporation’s operating aims are to effectively manage foreign exchange assets; invest the overseas assets legitimately; pursue company’s smooth and efficient operation, and protect shareholders’ interests. At the same time, it wants to increase the value of foreign currency assets.This article analyzes China’s Sovereign Wealth Funds’(CIC) situation at three aspects. There are corporate governance, operational and investment patterns, risk control methods. Corporate Governance Analysis analyzes the company’s governance structure and its problems. Investment Operations Analysis is mainly based on CIC’s strategic investment model and investment strategies, analyze CIC’s asset allocation in worldwide and strategic investments. The Risk Management and Control Analysis is based on integrated fuzzy and AHP, and China’s relevant data to build a comprehensive fuzzy evaluation model for the analysis of the investment project to invest in South Africa Duca Hill Group. Through analysis, we can draw the conclusion that the investment risk level of investment project in South Africa is the general risk. Compared to other investments, the investment projects should be more concerned about the high political risk. In addition, through the data analysis, the level of market risk faced by this project is relatively high, CIC not only manage and control the political risk, but also pay attention to market risk management and control. After focusing on this investment project risk assessment, the paper has a meta-analysis for CIC’s risk control methods, and puts forward some recommendations and approaches to risk management and control.Before analyzing the company’s operations and management, the article has a brief analysis of foreign exchange reserves which is the source of funds of CIC. Through three comparative model analyses, China’s foreign exchange reserves over the appropriate scale. This conclusion is in order to supervise and urge CIC to active positively in corporate governance and investment operations, proper manage and control projects’risk, create wealth smoothly, safeguard the shareholders’ interests.Article not only analyzes operation and management in three levels of CIC’s, but also analyzes the CIC’s potential problems, and puts forward specific recommendations. In corporate governance aspect, CIC should train and mining high-quality personnel, carefully select the talents. In the other hand, enhance the transparency of the company’s operations, and increase the extent of disclosure; in terms of investment operations, CIC should be steadier and avoid aggressive investment strategy, decentralize global deployment of strategic investment; in terms of project risk management and control, CIC should strengthen internal supervision, strengthen international cooperation and adopt risk transfer strategies.