On Sep. 27th 2024,China Investment Corporation (CIC) released the Annual Report 2023 (Annual Report) as approved by the Board of Directors.

The Annual Report disclosed CIC’s financials, performance, overseas investment activities and domestic equity management as at December 31, 2023. It also elaborated on CIC’s achievements in the past year on corporate governance, corporate social responsibility, human resources, as well as global outreach.

2023 marked the launch of the CIC Strategic Plan 2023-2025 and Visionary Goals 2030. In a volatile global environment presenting both risks and opportunities, we adhered to our position as a long-term institutional investor and anchored our efforts to strategic objectives, balancing development with security. We continually optimized asset allocation and investment strategies, enhanced our stewardship of state-owned financial capital, and successfully achieved our key operational targets for the year. This ensured a strong start to our new strategic plan.

According to the Annual Report, as of year-end 2023, CIC's overseas investments achieved a 10-year cumulative annualized net return of 6.57%, outperforming our long-term performance benchmark by approximately 31 basis points. State-owned financial capital under Central Huijin's stewardship reached CNY 6.41 trillion, a 9.4% increase from the beginning of the year. CIC's total assets stood at USD 1.33 trillion, with net assets of USD 1.24 trillion.

Currently, CIC’s global portfolio consists of public equity, fixed income, alternative assets, and cash products and others, respectively accounting for 33.13%, 16.46%, 48.31%, and 2.10%.

On enhancing corporate governance capabilities, refined Board operations, delineated responsibilities across governance bodies, and empowered Board committees improved our overall governance effectiveness. We embraced talent-centric development, cultivating our team of high-caliber financial professionals through robust training, recruitment, and exchanges. We explored ways to strengthen our data capabilities and leveraged our research resources. Additionally, we bolstered our audit and oversight processes to address systemic constraints hindering high-quality development.

On strengthening investment capabilities, we stayed true to our identity as a long-term investor. Amid market volatility, we judiciously enhanced our capabilities across asset allocation, investment management, risk control, and operational support. Closely monitoring market dynamics, we implemented innovative improvements to our portfolio management and analysis framework. This enabled us to execute more fine-grained strategies in public market investments and elevate the quality of our private market positions. We pioneered innovative approaches for overseas investment, expanding our global investment partner network and cultivating cross-border synergies.

On domestic equity management, emphasizing our role in capital stewardship, we innovated our approach to performing duties and exercising rights, strengthened our team of appointed directors, and expanded our equity management toolkit. These efforts positioned Central Huijin as a more effective trustee of state-owned financial assets, better equipped to meet current challenges and requirements. As an active shareholder, we guided our portfolio institutions to excel in financial development, while broadening and deepening support for the real economy.

On risk management, we enhanced our risk management governance structure, enhancing synergies across the “three lines of defense”. We reinforced our comprehensive risk management system, and strengthened risk prevention and control with a focus on key areas, integrating management of traditional and non-traditional risks to safeguard high-quality development. We fortified our risk prevention and control system for greater comprehensiveness and effectiveness and successfully held the line against any major risk events despite the complex, trying environment.

On sustainable development and corporate social responsibility, we developed our distinctive sustainable investment model, capitalizing on global green transition opportunities. We formulated a carbon neutrality action plan to advance carbon neutrality in our operations. We have integrated carbon peaking and carbon neutrality goals into our rural revitalization initiatives, leveraging our expertise to provide targeted support through concrete actions.

On global outreach and international cooperation, we endeavored to promote a more open, inclusive, and equitable international investment environment through participation in intergovernmental financial dialogues, international conferences, and peer exchanges, as well as active engagement in the International Forum of Sovereign Wealth Funds (IFSWF) and the BRICS Women's Business Alliance.

The year 2024 is set to be pivotal: for China, as it deepens reforms and advances its progress toward becoming a strong financial power; for CIC, as we embark on our new strategic plan. New eras demand fresh approaches; new journeys call for heightened commitments. CIC will resolutely fulfill its mission, continually elevating our corporate governance and honing our cross-border investment capabilities. We are determined to take firm strides on our path to becoming a world-class sovereign wealth fund.

Please see CIC Annual Report 2023 for more information.