The establishment of sovereign wealth funds in large developing countries has generated hot debate among participants in the international financial market. When accumulated foreign exchange reserves surpass a suffici...The establishment of sovereign wealth funds in large developing countries has generated hot debate among participants in the international financial market. When accumulated foreign exchange reserves surpass a sufficient and an appropriate level, the costs, risks and impacts of holding reserves on the macroeconomy of a country need to be considered. The Chinese Government established China Investment Corporation （ CIC） in 2007 to diversify its investment of foreign reserves and to raise investment income. However, because of certain conflicts of interest and institution-design caveats, CIC possesses some internal weakness, including a vague orientation, mixed investment strategies and an inefficient bureaucratic style. Although the subprime crisis has softened certain regulations and lessened rejection by the USA of ClC potential investments, the increased volatility and uncertainty of the market means that CIC is facing some new challenges in terms of its investment decisions. Moreover, CIC is competing with other Chinese investment institutions for injections of funds from the Chinese Government.展开更多
The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation （CIC） on 29 September 2007. The arrival of CIC has further heated up debate regarding sovereign wealth fun...The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation （CIC） on 29 September 2007. The arrival of CIC has further heated up debate regarding sovereign wealth funds （SWFs） and their potential implications for global financial markets. This is because, in carrying out its investments, CIC can tap into China＇s huge official foreign exchange reserves, which by April 2008 had surged to US$1.76tn. CIC＇s initial working capital of US$2OObn makes it the fifth largest SWFs in the world today. This article seeks to analyze CIC＇s investment strategies, as well as their potential economic and political implications for global as well as US financial markets.展开更多
Sovereign wealth funds,as an active participant in the global capital market,have attracted increasingly more attention from both academicians and practitioners.The opacity of the funds is one of the hot issues.A grea...Sovereign wealth funds,as an active participant in the global capital market,have attracted increasingly more attention from both academicians and practitioners.The opacity of the funds is one of the hot issues.A greater transparency is needed for the Sovereign Wealth Funds(SWFs)in the Middle East when they play an increasingly important role in the global capital market.By reviewing the transparency standards and examining the performance of SWFs in the region on information disclosure,this article lists the political,economic and cultural causes of the opacity and justifies the varieties in transparency.It also finds that the legitimacy of these funds should not be challenged because the political motivation does not necessarily change their market attributes.Although effective management of the funds requires improvement of transparency,the transparency standards should be moderate in the context of economic integration and financial globalization,hence international governance is a must.In addition to the reflection on the role of IFSWF in international governance,some lessons and suggestions are given to China’s SWFs at the end of the paper.展开更多
文摘The establishment of sovereign wealth funds in large developing countries has generated hot debate among participants in the international financial market. When accumulated foreign exchange reserves surpass a sufficient and an appropriate level, the costs, risks and impacts of holding reserves on the macroeconomy of a country need to be considered. The Chinese Government established China Investment Corporation （ CIC） in 2007 to diversify its investment of foreign reserves and to raise investment income. However, because of certain conflicts of interest and institution-design caveats, CIC possesses some internal weakness, including a vague orientation, mixed investment strategies and an inefficient bureaucratic style. Although the subprime crisis has softened certain regulations and lessened rejection by the USA of ClC potential investments, the increased volatility and uncertainty of the market means that CIC is facing some new challenges in terms of its investment decisions. Moreover, CIC is competing with other Chinese investment institutions for injections of funds from the Chinese Government.
文摘The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation （CIC） on 29 September 2007. The arrival of CIC has further heated up debate regarding sovereign wealth funds （SWFs） and their potential implications for global financial markets. This is because, in carrying out its investments, CIC can tap into China＇s huge official foreign exchange reserves, which by April 2008 had surged to US$1.76tn. CIC＇s initial working capital of US$2OObn makes it the fifth largest SWFs in the world today. This article seeks to analyze CIC＇s investment strategies, as well as their potential economic and political implications for global as well as US financial markets.
基金supported by“Study on the Middle East Sovereign Wealth Funds”,the MOE Project of Key Research Institute of Humanities and Social Sciences in Universities(13JJD810009).
文摘Sovereign wealth funds,as an active participant in the global capital market,have attracted increasingly more attention from both academicians and practitioners.The opacity of the funds is one of the hot issues.A greater transparency is needed for the Sovereign Wealth Funds(SWFs)in the Middle East when they play an increasingly important role in the global capital market.By reviewing the transparency standards and examining the performance of SWFs in the region on information disclosure,this article lists the political,economic and cultural causes of the opacity and justifies the varieties in transparency.It also finds that the legitimacy of these funds should not be challenged because the political motivation does not necessarily change their market attributes.Although effective management of the funds requires improvement of transparency,the transparency standards should be moderate in the context of economic integration and financial globalization,hence international governance is a must.In addition to the reflection on the role of IFSWF in international governance,some lessons and suggestions are given to China’s SWFs at the end of the paper.
