CIC Names Ding Xuedong As New Chairman


China Investment Corp. says that China’s State Council has decided to name Ding Xuedong as the sovereign wealth fund’s new chairman and chief executive officer.

Ding was born in 1960 and holds a Ph.D. in economics from the Research Institute for Fiscal Science, Ministry of Finance.

Previously, Ding served as deputy secretary general of the State Council. He held several positions in the Ministry of Finance, including vice minister, assistant minister, director general of the Department of Education, Science and Culture; director general of the Department of Agriculture; director general of the Department of State-owned Capital Administration.

Earlier in his career, Ding served as director general of the Department of Property Rights; director general of the Department of Human Resources & Head of the General Office, the State-owned Asset Administration Bureau.

In March, Lou Jiwei, former CIC chairman for over five years, left to become minister of finance. Since then, a number of officials have been rumored as candidates for the CIC chief post, including mayor of Chongqing Huang Qifan, director of the State Administration of Foreign Exchange Yi Gang and chairman of Industrial and Commercial Bank of China Jiang Jianqing.

Established in September 2007, CIC manages a portion of China’s foreign exchange reserves in order to diversify its investments and achieve higher returns. It started managing a capital injection of US$200 billion, and received an additional US$30 billion in 2011.

According to CIC’s latest annual report, the Chinese sovereign wealth fund’s assets rose to US$482 billion in 2011.

Annual return of its global portfolio from 2008 to 2011 were -2.1%, 11.7%, 11.7% and -4.3%. Cumulative annualized return of those four years were -2.1%, 4.1%, 6.4% and 3.8%.

During the past two years, CIC has been striking big deals in every corner of the world, with energy and power remaining its favorite sector.

In 2011, CIC acquired 10% of Atlantic LNG Co. (of Trinidad and Tobago) for US$850 million; 10.5% of Diamond S Shipping for US$100 million; 25.8% of Shanduka Group (of South Africa) for US$247 million; 19% of AES-VCM Mong Duong Power (of Vietnam) for US$93 million; 13.84% of Horizon Roads (of Australia) for US$270 million; and 30% of GDF Suez EPI SA (of France) for US$3.15 billion.

In 2012, CIC’s major direct investment deals include acquiring 7.43% of Sunshine Oilsands (of Canada) for US$142 million; 8.68% of Thames Water Utilities (of the United Kingdom) for US$411 million; and 5% of Polyus Gold (of Russia) for US$424.5 million.

 

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