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QINGDAO TODAY
在线翻译:
szdaily -> Business -> 
CIC reports 2.4% overseas investment loss for 2018
    2019-09-23  08:53    Shenzhen Daily

CHINA Investment Corp. (CIC), the nation’s US$941 billion sovereign wealth fund, reported a 2.35 percent loss on its overseas investments last year amid tumbling global equity markets.

Chairman Peng Chun didn’t strike an optimistic note about the future either, telling reporters in Beijing that the investing environment is “more difficult” this year due to rising asset-price volatility, unilateralism, slowing global growth and tighter regulatory scrutiny on foreign investments.

Last year’s loss compares with a record 17.6 percent gain in 2017. Peng, speaking at the release of CIC’s 2018 annual report Friday, said that the firm was seeking to lower risk and leverage in its portfolio as uncertainties rise.

Peng took the helm in April, two years after his predecessor left, and has been seeking new ways to bolster returns. CIC aims to boost non-public investments to 50 percent by the end of 2022, it said in a statement.

“Such a situation indeed posts a bigger challenge to a large institutional investor like us,” Peng said. “There are a lot of uncertainties.”

He said CIC would instead aim to make the most of more certain opportunities by boosting investment along China’s Belt & Road Initiative and focusing on companies that have potential in Asia’s biggest economy.

The loss adds pressure on CIC’s new management because it lowers the firm’s 10-year rolling annualized yield, which China uses to evaluate the fund’s performance. The fund hasn’t received any additional capital from the government for investing overseas since 2012.

The decline did, however, beat CIC’s benchmark by 371 basis points, a performance that was above average among global peers, Peng said. The 10-year annualized yield through 2018 was 6.07 percent, exceeding its target by 45 basis points.

(SD-Agencies)

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