China Investment Corporationâ€™s Post-Crisis Investment Strategy
China Investment Corporation (CIC) has transformed its initial investment strategy of focusing mainly on the US financial sector during 2007â€“08 into a new strategy of diversified investments across geography and sectors since 2009. Massive financial losses and domestic political backlash during the global financial crisis of 2008 gave impetus to CICâ€™s rethinking of strategy. In the midst of the crisis, it engineered a capacity-building and reorganisation exercise to reposition itself for a new strategy that has since allowed for more diversification of investments. A more receptive global investment climate for sovereign wealth funds has also aided CICâ€™s efforts to present itself as a responsible global investor, and facilitated its investments in the post-crisis period. CIC has emerged as one of the most aggressive sovereign wealth funds as global markets recover. Post-crisis, CICâ€™s new strategy of diversification is characterised by continued investments in the financial sector, but with new investments increasingly directed to real sectors of energy, natural resources and real estate in both developed and emerging economies. CICâ€™s impeccable timing in making diversified investments, and its attention to reducing risks and enhancing returns, has been rewarded by an impressive turnaround in performance since 2009. Consequently, it is well poised for its mission towards making long-term risk-adjusted returns. Going forward, the success and sustainability of the new strategy will be contingent on how well CIC can navigate domestic bureaucratic rivalry and the shifting climate of the international investment environment in the medium to long term. Ultimately, CICâ€™s shareholder, the government of the Peopleâ€™s Republic of China (PRC ), holds the key to its future direction and goals.
Volume (Year): 12 (2011)
Issue (Month): 3 (July)
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:wej:wldecn:486. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ed Jones)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.