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February 2024
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February 2024
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China sovereign wealth fund CIC’s return and assets drop

By Hui Ching-hoo   
December 6, 2023

China Investment Corporation (CIC) posted a lower net annualised return of 6.43% on its overseas investments in the ten years to December 2022 as rate hikes and geopolitical risks battered markets last year.

But according to the sovereign wealth fund, although the figure was down from 8.73% in 2021, it was relatively high compared with global peers, and 26 basis points better than the long-term performance target set by its board.

CIC, which manages part of China’s foreign reserves and posted a net investment return of 14.27% in 2021, didn’t disclose last year’s investment return.

However, its 2022 annual report released on December 2 shows that assets shrank 8.14% to US$1.24 trillion from $1.35 trillion in 2021.

The report noted that global markets were dragged down last year by rising geopolitical risks, supply chain snarls, and aggressive rate hikes in the US and Europe to fight inflation.

According to CIC, it was “undaunted” by the strong headwinds and “unprecedented” challenges, and “maintained its strategic focus and capitalised on its advantages as a long-term institutional investor”.

The wealth fund “withstood challenges rarely witnessed in history and delivered long-term investment returns” that exceeded the board’s targets, Chairman and Chief Executive Officer Peng Chung writes in the report.

CIC’s annualised return since its inception in 2007 was 12.67%.