Two Major Sovereign Wealth Fund of China
Autor: gangtuk59 • October 18, 2016 • Essay • 1,092 Words (5 Pages) • 708 Views
Q1. What are the largest SWF and what they do?
Rank | SWF | country | assets (Billion USD) |
1 | Government Pension Fund | Norway | 873 |
2 | Abu Dhabi Investment Authority (ADIA) | UAE | 773 |
3 | China Investment Corporation (CIC) | China | 746.7 |
4 | SAMA Foreign Holdings | Saudi Arabia | 685.6 |
5 | Kuwait Investment Authority (KIA) | Kuwait | 592 |
6 | SAFE Investment Company | China | 541.9 |
7 | Hong Kong Monetary Authority Investment Portfolio | Hong Kong | 427.7 |
8 | GIC Private Limited | Singapore | 344 |
9 | Qatar Investment Authority | Qatar | 256 |
10 | National Social Seccurity Fund | China | 236 |
Table 2: Top 10 largest sovereign wealth funds as of June 2015.
- Abu Dhabi Investment Authority (ADIA)
ADIA was established in 1976 with purpose of investing funds over various asset classes, with low risk. It is the second largest Sovereign wealth funds in the world with assets of $773 billion. It generates funds from oil exports particularly from National Oil Company (ADNOC) and dividends paid by its subsidiaries. It is owned and supervised by the government of Abu Dhabi. The fund is an independent legal identity and can be used to fulfill its constitutional obligation and objectives. As of today ADIA invests in all international markets including, infrastructure, real estate, private equity, and fixed income and treasury. It had invested $7 billion in Citigroup in 2009 and lost 90% of its value. ADIA investment activities decreased substantially following its peak investments in 2007 and 2008.
- GIC Private Limited of Singapore
Government of Singapore Investment Corporation, 8th largest Sovereign wealth fund founded in 1981 to management Singapore’s foreign reserves. The GIC doesn’t own the fund but manages funds from government of Singapore and Monetary Authority of Singapore. It has three major enterprises: GIC Asset Management Pte Ltd, GIC Real Estate Pte Ltd, and GIC Special Investments Pte Ltd. Its investment activities were peak during subprime mortgage crisis of 2007-2010 in USA. It made $200 million investment in the equity of Stuynesant Town. The investment was eventually wiped out due to default loan. It also invested $11 billion Swiss francs for a 7.9% stake in the Swiss bank UBS in 2007. Moreover, it made $6.88 billion for about 9% stake in Citigroup in 2008.
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