China's China Investment Corporation chairman out with Annual Report 22 July 2016
- 2105 net profit $73.94bln vs $89.1bln in 2014
- net return on overseas investment -2.96% vs +5.47% in 2014, the worst return since 2011
- fx loss $3.77bln vs $821m loss in 2014
- relatively large FX losses caused by USD appreciation
- sees subdued inflation and lacklustre trade
- expects policies of major economies to continue to diverge in 2017
- expects declining returns on asset investments, increased volatility in 2016
China Investment Corporation (CIC), founded in 2007, was established as a vehicle to diversify China's foreign exchange holdings and seek maximum returns for its shareholder within acceptable risk tolerance.
Cautionary/gloomy/realistic stance from CIC. Full report here.