China Investment Corp. posted a return of more than 12% on overseas investments in 2020 after markets rallied on loose monetary policies, marking a breakout year for China’s $1 trillion sovereign wealth fund, reported Bloomberg.
The unaudited returns bring the Beijing-based fund’s 10-year rolling average to more than 6.6%, beating its target. Executive Vice President Zhao Haiying expects calmer markets this year even as policymakers try to stimulate growth without spurring runaway inflation.
“Two thousand [and] twenty was a very unusual year,” Zhao, also a member of the Chinese People’s Political Consultative Conference, said in an interview before the top advisory body convenes for its annual meetingsin Beijing.
“We withstood the test of strong winds and waves, and delivered relatively good returns,” Zhao said. “Last year was a test to us in terms of both portfolio returns and investment management, but it turned out quite well.”