CIC does not take diversification into account to achieve asset value

Gao, general manager of China Investment Co., Ltd. (hereinafter "CIC") said at the 2008 financial year's meeting December 11 that CIC's goal was to be accountable to shareholders, to achieve value added, and that "diversification goals" such as politics, history, culture, and geography were not to be considered by CIC. Gao said that the formation of CIC soon, the attention of all parties, the pressure is very high. Currently manages 200 billion of billions of dollars in foreign exchange assets, which are financed through debt issuance, at an annual rate of about 5% per cent. CIC first has to repay the debt, earning about 5% of the interest. And from the history of China's foreign exchange investment, has never reached such a level of return. Therefore, the pressure is very high.　　CIC wants to be seen as one of the average investors. He said that as the chief manager of CIC, it is responsible for its shareholders and the State Department. It is the core goal to maximize the value of the whole nation's assets, and the "diversified goals", such as politics, history, culture and geography, are not to be considered by CIC. CIC will follow the principles of commercialization and marketization and will be a responsible investor and a similar sovereign investment fund investor.　　CIC will keep a close eye on clean energy, environmental protection and the well-being of ordinary people and will do it. CIC also stressed corporate governance, Gao said, "we say that maximizing benefits is long-term, not short-term." Good corporate governance structure can make our profits have long-term, stable income, so at this point foreign investment will pay more attention to. "Regarding the transparency of CIC, Gao stressed that CIC would act in accordance with internationally recognized and time-tested rules." While the mood is understandable, there is concern that CIC will scramble for strategic resources in some countries, but that worry is superfluous. Conspiracy theory to speculate on the commercialization of CIC, market-oriented behavior, such thinking is to stay in the Cold War era. In his view, it is the transparency standard of CIC to follow relevant laws and regulations to disclose information.　　It is impossible to disclose everything because CIC, like other investors, is a commercial activity. Gao in particular that he has found that large funds can beat inflation by studying pension funds in more than 30 countries. Sovereign wealth funds, he argues, are not easy to do, and it is unreasonable to see SWFs as "vicious" and "terrifying" funds.