China Investment Corp. (CIC) registered a 10.6% return of investment (ROI) for overseas ventures following an improvement in the global equities market. The turnaround is quite significant considering the 4.3% loss it recorded two years ago.
According to CIC's annual report, the net income from the sovereign wealth fund jumped to US $77.4 billion in 2012 against the US $48.4 billion registered in 2011.
Analysts were impressed by the performance because it "was a relatively big number for a single year," as Li Jie, who heads the foreign currency research center at the Central University of Finance and Economics, pointed out.
Gao Xiqing, CIC president, told the state-news agency Xinhua, that CIC benefited from diversifying its investments rather than relying on US treasuries and finding ways to invest in equities and real estate property.
CIC's global ventures is being handled by the China Investment Corp. International, which was created in 2011. The government has invested US $49 billion into the CIC unit.
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