Sept 28, 2012
Translated by Zhu Na

China Investment Corporation (CIC), the country's sovereign wealth fund, was founded on Sept 29, 2007 with registered capital of $200 billion.

To mark the fifth anniversary of the investment funds founding, Xinhua News Agency carried a glowing report today noting that as of the end of June 2012, CIC had averaged an annual yield of 3.9 percent from its overseas investments.

The article noted that soon after it was founded, CIC encountered a "once-in-a-century" international financial crisis and that the company’s asset allocation and investment activities faced serious challenges at that time.

It concludes by asserting that over the past five years, facing the complex and changing global economic and financial situation, by adhering to asset allocation-driven investment activities, CIC has achieved the goal of diversifying foreign exchange assets and has obtained a good investment return.
 
China’s sovereign wealth fund, which now controls close to $500 billion in assets, posted a 4.3 percent loss on its overseas holdings last year because of declines in global commodity prices. The return on CIC’s global portfolio of investment in 2010 was 11.7 percent.

In order to establish the CIC, China's Ministry of Finance bought foreign exchange from the central bank which it paid for by issuing special treasury bonds worth 1.55 trillion yuan at an annual rate of 4.3 percent.

Links and Sources
Xinhua News Agency: 中投公司成立五年境外投资年化收益率3.9%