Santiago Principles Self-Assessment

China Investment Corporation

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

China Investment Corporation (CIC) was incorporated as a state-owned company under the Company Law of China.

In accordance with China's Company Law, CIC has established a sound and complete corporate governance structure composed of the Board of Directors, the Board of Supervisors, and the Executive Committee, with clear authority and responsibilities, standardized operations, mutual coordination, and checks and balances. The State Council exercises shareholder's rights on behalf of the State.

Public disclosure channels: websites (, press releases (, annual reports (, WeChat official accounts, public events, interviews and media coverage, publicity materials, publications, regulatory filings, statutory reports and other disclosure materials, etc.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

CIC set up its Board of Directors and Board of Supervisors in accordance with China's Company Law. CIC's three governing bodies are the Board of Directors, the Board of Supervisors and the Executive Committee. The State Council exercises shareholder's rights on behalf of the State.

In accordance with the Company Law of China and CIC’s Articles of Association, the Board of Directors is responsible for: establishing and overseeing the Company’s development strategies, operational policies, and investment plans; determining major matters to be reported on to the shareholder; approving the annual budget and final accounts; appointing and removing senior executives; and approving the establishment of internal management bodies.

The Board of Directors comprises Executive Directors, Non-Executive Directors, Independent Directors, and an Employee Director.

Organized under and as authorized by the Board of Directors, the Strategy and Social Responsibility Committee, the Risk Management Committee, and the Remuneration Committee are responsible for studying and providing insights on major matters to inform decisions taken by the Board of Directors.

Pursuant to the Company Law of China, CIC’s Articles of Association, and other relevant regulations, the Board of Supervisors is responsible for conducting internal audits and monitoring the Company’s finances, with the objective of ensuring high quality financial management and reporting. Both the Supervisory Committee and the Audit Committee report to the Board of Supervisors.

Pursuant to its mandate from the Board of Directors, CIC’s Executive Committee is responsible for: implementing the resolutions of the Board; deciding on major operational matters including the establishment and improvement of basic policies and operation mechanisms; and overseeing personnel policies including performance evaluation, remuneration, and incentives.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

Four principles underlie our investment activities. We invest on a commercial basis. Our objective is to seek maximum returns for our shareholder within acceptable risk tolerance. We are a financial investor and do not seek control of the companies in our portfolio. We are a responsible investor, abiding by the laws and regulations of China and recipient countries and conscientiously fulfilling our corporate social responsibilities. We pursue investments based on in-depth research within our asset allocation framework to ensure a prudent and disciplined decision-making process.

CIC follows a set of investment philosophies, which is firmly based on its institutional characteristics and understanding of investment management. CIC takes a holistic and disciplined approach to strategy design and portfolio construction, analysis, and management to ensure a well-disciplined portfolio with integrity and stability. As a long-term investor, CIC is well positioned to withstand short-term market volatilities and capture illiquidity premiums. CIC continues to pursue risk diversification by spreading allocation across asset classes and sectors in a bid to reduce portfolio volatility and curb downside risks.

As a large, long-term institutional investor, CIC has always attached great importance to constructing a simple, transparent, and resilient portfolio, and made ongoing efforts to optimize asset allocation and portfolio management. CIC adopts the “Reference Portfolio - Policy Portfolio - Actual Portfolio” framework for asset allocation, and takes a holistic and disciplined approach to strategy design and portfolio construction, analysis, and management to ensure portfolio integrity and stability. The return on the total portfolio is determined by reference portfolio selection, policy portfolio construction, and actual portfolio management.

The Reference Portfolio consists of public market equity and fixed-income indices and anchors the long-term neutral risk target of the total portfolio.

The Policy Portfolio introduces additional asset classes and serves as a medium- to long-term neutral portfolio for improved returns and risk diversification; manages intra-asset allocation to optimize the investment footprint across geographies, sectors, industries, themes, and risk attributes; and further enhances the risk-return profile through dynamic allocation adjustments.

The Actual Portfolio ensures the effective implementation of the policy portfolio by managing total portfolio exposure and generates alpha via active management by the investment team

The above-mentioned information is disclosed via the public disclosure channels (