On December 1, 2023, China Investment Corporation (CIC) released the Annual Report 2022 (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, 2022. It also elaborated on CIC’s achievements in the past year on corporate governance, sustainable development, human resources, as well as global outreach.

Mr. PENG Chun, Chairman and CEO of CIC, observed in his opening message that 2022 marked the 15th anniversary of CIC. Since its inception in 2007, CIC has always stayed true to its identity as a long-term institutional investor that operates on an international, market-oriented, professional, and responsible basis. We have built up a robust investment management system and governance structure befitting a large international institutional investor. We have withstood challenges rarely witnessed in history and delivered long-term investment returns in excess of the performance targets set by the Board of Directors, with the annualized cumulative growth of state-owned capital under CIC's management since its inception reaching 12.67%. CIC has thus made positive contributions to preserving and enhancing the value of China's foreign exchange holdings and to advancing China's economic development. Our overseas investments have also helped promote international investment collaboration and global economic progress.

In 2022, undaunted by strong headwinds and unprecedented challenges, CIC maintained its strategic focus and capitalized on its advantages as a long-term institutional investor. We continued to refine our asset allocation and investment strategy, worked to enhance total portfolio resilience, intensified risk prevention and mitigation in critical areas, and delivered market-beating annual investment returns. As at December 31, 2022, the annualized cumulative 10-year net return on CIC's overseas investments stood at 6.43% in USD terms, which was relatively high among global peers and beat our long-term performance target set by the Board of Directors by 26 basis points. Despite adverse impacts by factors such as exchange rates, CIC’s annual net profit proved a boost to its shareholder’s equity value, and the company successfully accomplished its annual tasks including distribution of dividends to its shareholder.

Overseas investment: we carried out portfolio rebalancing and strategy refinements in an orderly manner, steadily made progress on our investments, and achieved our asset allocation target of 50% in alternative assets. These efforts increased the overall resilience and quality of our overseas investment portfolio. In addition, we actively engaged in thematic investments relating to climate change and energy transition.

International cooperation: we deepened cooperation with our global partners on an ongoing basis, grown the “circle of friends” for win-win cooperation, prudently managed our bilateral funds, and fostered high-quality international investment and industrial collaboration.

Domestic equity management: Central Huijin, a subsidiary of CIC, motivated its portfolio companies to provide stronger financial support to the real economy and facilitate steady growth. It actively updated and refined the “Huijin Model”, championed the best use of state-owned financial capital, and participated in the market-based resolution of distressed financial institutions. The company also further strengthened the accountability of dispatched directors in their autonomous discharge of responsibilities, as it continued to build institutional capacity for the performance of duties.

Comprehensive risk management: we optimized the Risk Management Committee's configuration, revised fundamental policies for comprehensive risk management, expanded coverage to more risk categories, and strengthened our risk foresight, response, and resolution capabilities across the board.

Sustainable development: we developed Guidelines for Attaining Carbon Peak and Carbon Neutrality Goals and Practicing Sustainable Investing and launched an Action Plan for Operational Carbon Neutrality, setting out a clear timetable and roadmap towards energy savings and emissions reduction targets. In addition, as an important part of our commitment to corporate social responsibilities, we continued to support charitable causes with multidimensional social impacts and rural revitalization with innovative strategies that leverage green resources. Our rural revitalization efforts helped raise living standards and prop up local industries.

“Practice enriches knowledge, and deeper knowledge leads to better practice.” Chairman PENG observed that for the past 15 years, we at CIC have been on a persistent quest to overcome challenges and advance on our mission. In 2023, we initiated a new five-year strategic plan, and amid the turbulent tides in the international environment, CIC remained anchored in its strategic objectives, balanced growth with security, and achieved strong results and a promising start to this new chapter. Standing at this new starting point in our history, we will continue to pursue constant self-improvement in our quest for excellence, deepen our relationships with global partners, and join forces to overcome challenges and reap rewards together, making fresh contributions to global economic advancement.

Please see CIC Annual Report 2022 for more information.