- The Oxford Handbook of Sovereign Wealth Funds
- List of Figures
- List of Boxes
- List of Tables
- About the Contributors
- Introducing Sovereign Wealth Funds
- A Financial Force to be Reckoned With?: An Overview of Sovereign Wealth Funds
- Sovereign Development Funds: The Governance and Management of Strategic Investment Institutions
- From Financialization to Vulture Developmentalism: South-North Strategic Sovereign Wealth Fund Investment and the Politics of the “Quadruple Bottom Line”
- Sovereign Wealth Funds and the Resource Curse: Resource Funds and Governance in Resource-Rich Countries
- Sovereign Wealth Funds and the Global Political Economy of Trust and Legitimacy
- Sovereign Wealth Funds and Domestic Political Risk
- Sovereign Wealth Funds and Foreign Policy
- Sovereign Wealth and the Extraterritorial Manipulation of Corporate Conduct: A Multifaceted Paradigm in Transnational Law
- Sovereign Wealth Funds and Private Equity
- Co-Investments of Sovereign Wealth Funds in Private Equity
- The Use of Debt by Sovereign Wealth Funds
- Sovereign Wealth Fund Investment and Firm Volatility
- Sovereign Wealth Funds: Investment Choices and Implications Around the World
- The China Investment Corporation: From Inception to Sideline
- Investment Terms and Level of Control of China’s Sovereign Wealth Fund in its Portfolio Firms
- Strangers Are Not All Danger: Sovereign Wealth Fund Investment in the Energy Industry
- The Norwegian Government Pension Fund Global and the Implications of its Activities for Stakeholders
- Sovereign Wealth Fund Investments and Industry Performance: Evidence from Europe
- Spain and Sovereign Wealth Funds: Four Strategic Governance Types
- Sovereign Wealth Funds in Central and Eastern Europe
- Sovereign Wealth Funds in the Persian Gulf States
- The Australian Future Fund
- Is it Possible to Avoid the St Augustine Syndrome of Fiscal Procrastination?: The Case of Chile
Abstract and Keywords
China’s sovereign wealth fund (SWF), the China Investment Corporation (CIC), was established in 2007 and has grown to become the fourth largest SWF in the world with assets and offices spanning the globe. This chapter looks at the range of unique factors that need to be understood in order to place the CIC in context. When China decided to form its own SWF, it decided to do so by borrowing from the central bank in a complicated swap transaction in order to highlight the CIC’s independence from existing entities like the People’s Bank of China and the State Administration of Foreign Exchange. While most SWFs grow from an excess of natural resource wealth, the Chinese SWF is unique in that it grew out of years of current account surpluses accumulated from ensuring a fixed exchange rate. The chapter discusses the macroeconomic interplay between China and the CIC.
Keywords: sovereign wealth funds, China Investment Corporation, People’s Bank of China, State Administration of Foreign Exchange, Ministry of Finance, exchange rate, political institutions, capital flows, macro-economy, surplus currency reserves
Christopher Balding is Associate Professor Finance and Economics, holding tenure with Chinese characteristics at the HSBC Business School of Peking University Graduate School. A recognized expert in the Chinese economy sovereign wealth funds, he has written a book entitled Sovereign Wealth Funds: The New Intersection of Money and Power, published by Oxford University Press. He is a columnist for Bloomberg View as well as a regular contributor to the Financial Times. His scholarly work has been published in leading journals such as the Review of International Economics, the International Finance Review, and Journal of Public Economic Theory, on such diverse topics as CDS pricing, the WTO, and the economics of adoption and abortion. He received his PhD from the University of California, Irvine and worked in private equity prior to entering academia.
Kevin Chastagner is Assistant Professor of Management at the Peking University HSBC Business School. Kevin’s research interests are in strategy and international business and his current research questions are related to three main areas: cross-border M&A, political connections, and innovation. Most recently, Kevin’s work on the internationalization of innovation was published in the Journal of International Marketing. Kevin and his wife moved to China in 2012 after he obtained his PhD from Washington State University.
Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.
If you have purchased a print title that contains an access token, please see the token for information about how to register your code.