CIC announces 6.8% return on registered capital

In its first financial report, China Investment Corp (CIC) reported that it had achieved a 6.8% return on registered capital, the Financial Times reported. The return meant that despite the much-criticized decrease in the value of investments it made in 2007 and a -2.1% return on its portfolio in 2008, it still outperformed many other sovereign wealth funds. Chairman Lou Jiwei attributed the performance of the fund to keeping most of its assets in cash. CIC is looking forward to "embrace investment opportunities in 2009 and in the future," Lou said in the report, which also detailed large increases in long-term equity investments in Chinese financial institutions, increasing the fund’s total assets to US$297.5 billion. CIC attempted to assuage foreign concerns about CIC’s intentions by noting that it "was a purely financial investor and did not seek to control any company or industry" and that "its investments were made on a purely commercial basis."