China’s sovereign wealth fund posted a 4.3 percent loss on its overseas investments last year as declines in global commodity prices roiled the value of its resources-heavy portfoli.
Net income at the $482.2 billion fund, which includes stakes in China’s biggest banks, fell to $48.4 billion in the year ended Dec. 31, Beijing-based China Investment Corp. said in its annual report released today on its website.
The overseas investment performance was the worst since the fund was set up in 2007, and compares with an 11.7 percent return in 2010.
The MSCI World Index (MXWO) tumbled 7.6 percent last year as the European debt crisis hampered growth prospects and sapped demand for commodities, driving down the value of CIC’s investments after Chairman Lou Jiwei deployed almost all the fund’s cash in 2010 to tap an improving global economy.
Teck Resources Ltd. (TCK/B), the world’s second-largest exporter of metallurgical coal in which CIC bought a $1.5 billion stake in 2009, slumped 42 percent last year in Toronto trading.
“It’s quite natural given the systemic risk last year,” Zhao Qingming, a senior analyst in Beijing at China Construction Bank Corp., said ahead of the release.
“Other sovereign wealth funds likely didn’t do all that well either.”
Temasek Holdings Pte, Singapore’s state-owned investment company, said earlier this month that profit for the year to March 31 declined 16 percent as contributions from units fell amid the global slowdown, while total shareholder return narrowed to 1.5 percent from 4.6 percent in the previous year.
bloomberg.com
Net income at the $482.2 billion fund, which includes stakes in China’s biggest banks, fell to $48.4 billion in the year ended Dec. 31, Beijing-based China Investment Corp. said in its annual report released today on its website.
The overseas investment performance was the worst since the fund was set up in 2007, and compares with an 11.7 percent return in 2010.
The MSCI World Index (MXWO) tumbled 7.6 percent last year as the European debt crisis hampered growth prospects and sapped demand for commodities, driving down the value of CIC’s investments after Chairman Lou Jiwei deployed almost all the fund’s cash in 2010 to tap an improving global economy.
Teck Resources Ltd. (TCK/B), the world’s second-largest exporter of metallurgical coal in which CIC bought a $1.5 billion stake in 2009, slumped 42 percent last year in Toronto trading.
“It’s quite natural given the systemic risk last year,” Zhao Qingming, a senior analyst in Beijing at China Construction Bank Corp., said ahead of the release.
“Other sovereign wealth funds likely didn’t do all that well either.”
Temasek Holdings Pte, Singapore’s state-owned investment company, said earlier this month that profit for the year to March 31 declined 16 percent as contributions from units fell amid the global slowdown, while total shareholder return narrowed to 1.5 percent from 4.6 percent in the previous year.
bloomberg.com
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