Among China's state-owned enterprises, there is one company that is very low-key, its name rarely appears in the public eye, and its number of employees is less than 1,000, but its profit is as high as nearly 800 billion yuan, more than many well-known central enterprises. This company is China Investment***It is the most profitable state-owned enterprise in China and the world's largest sovereign wealth**. How does it do it?What's the story behind it?
Founded on September 29, 2007, China Investment Corporation (hereinafter referred to as CIC) is a limited liability company funded by China Investment Corporation (hereinafter referred to as CIC) with a registered capital of US$200 billion, and is represented by the State-owned Assets Supervision and Administration Commission (hereinafter referred to as the State-owned Assets Supervision and Administration Commission) to perform the duties of an investor.
CIC's main business is to use the country's foreign exchange reserves for overseas investment, with the goal of maintaining and increasing the value of the country's foreign exchange reserves, while promoting international economic cooperation and development.
CIC invests in a wide range of asset classes, including equity, fixed income, hedged**, private equity, real estate, infrastructure, resources and energy, across continents and across a wide range of sectors, including finance, energy, consumer, technology, healthcare, and industrials.
CIC's investment strategy is guided by long-term value investing, with risk-adjusted returns as the goal, global diversification as the principle, marketization, specialization and internationalization, and participation in the global capital market as a responsible investor.
CIC is structured in six decision-making, supervisory and executive bodies: the Board of Directors, the Supervisory Board, the Executive Committee, the Investment Committee, the Risk Management Committee, and the Audit Committee, as well as eight functional departments, including the President's Office, Strategic Development, Legal & Compliance, Human Resources, Finance, Information Technology, Investment Operations, and Public Affairs & Cooperation, as well as investment departments and representative offices around the world.
CIC had 683 employees at the end of 2020, of which 28 were foreigners7%, and 48 employees with overseas education background9%, and 65 employees have overseas work experience9%, and the proportion of employees with a master's degree or above is 839%。
CIC's performance was impressive, with a cumulative return on investment of 6.02 at the end of 20206%, and the cumulative investment income was 787US$400 million, with a cumulative net return on investment of 53%, and the cumulative net investment income was 633US$900 million, with both cumulative investment yield and cumulative net investment return exceeding the average of the global ** market and bond market over the same period.
The establishment and development of CIC is an important measure for China to deal with problems such as excessive foreign exchange reserves, irrational structure, low returns, and uncontrollable risks, as well as an important platform for China to actively participate in global economic governance and international financial cooperation, reflecting China's determination and confidence in opening up, reform and innovation.
CIC's investment philosophy and practices provide useful lessons and inspiration for investors in China and around the world, demonstrating the image of a modern investor who is value-oriented, risk-constrained, and responsibility-oriented, and has contributed to the healthy and sustainable development of the global capital market.
CIC's investment performance and social impact have added luster and weight to China's national image and international status, created value and well-being for China's economic development and social progress, provided support and protection for China's national interests, and built bridges and ties for China's peaceful rise and a harmonious world.