China Investment Corp., created to manage part of the nation’s $3.5 trillion of foreign-currency reserves, reported a 10.6 percent return on its overseas investments last year as global equities rallied.
Ding Xuedong takes over as head of China’s wealth fund facing three challenges: boosting returns, finding new capital and dealing with rivalry from the manager of the nation’s foreign-exchange reserves.
China appointed Ding Xuedong, a deputy secretary-general of the State Council, as head of the nation’s sovereign wealth fund at a time when the prospect of the Federal Reserve reducing stimulus has roiled global markets.
China Investment Corp., the nation’s $482 billion sovereign wealth fund, has met the government’s expectations by delivering 5 percent annualized returns in the five years since its creation, the official Xinhua News Agency reported, citing the fund’s president.
Iron Mountain Inc. and Equinix Inc., two technology companies planning to convert to real estate investment trusts, plunged after saying that the U.S. Internal Revenue Service is scrutinizing their eligibility.
The widespread perception that China Investment Corp., the country’s sovereign wealth fund, is linked with other Chinese companies in a global quest for natural resources is wrong, Gao Xiqing, CIC’s president, told the Globe & Mail.
JPMorgan Chase & Co.’s $5.8 billion trading loss this year showed that the financial system is getting too complicated for even respected institutions, the president of China’s sovereign-wealth fund said.