China Investment Corporation
China Investment Corporation Annual Report 2012 China Investment Corporation Annual Report 2012 © China Investment Corporation New Poly Plaza, 1 Chaoyangmen Beidajie, Dongcheng District, Beijing, 100010 Tel +86 (10) 8409 6277 Fax +86 (10) 6408 6908 www.china-inv.cn 1 CHINA INVESTMENT CORPORATION 2012 ANNUAL REPORT CONTENTS Message from the Chairman and CEO 2 Corporate Review 8 Overview 9 Culture and Core Values 11 Corporate Governance 13 Investment and Management Review 26 Investment Strategy and Management 27 Risk Management 38 Human Resources 42 Global Outreach 46 2012 Financials 48 2 Message from the Chairman and CEO 3 MESSAGE FROM THE CHAIRMAN AND CEO 2012 marked the fifth anniversary of China Investment Corporation (CIC), five years of great strides and important progress. In a complex and volatile global market environ- ment, we stayed true to our core values, pursued long-term investments based on commercial considerations and achieved good returns for our shareholder through effective risk management and active adjustment of our asset alloca- tion and portfolio structure. I am pleased to share with you the 2012 Annual Report. In 2012, global financial markets remained in thrall to continued high risks, low yields and high volatility, hall- marks of the post-crisis era. In the first half of 2012, fiscal retrenchment in the United States and deepening crisis in Europe posed strong headwinds, slowing the global economic recovery and prolonging turbulence in financial markets. In the third quarter, the new round of Quantitative Easing launched by the US Federal Reserve, and the Outright Monetary Transactions undertaken by the European Central Bank, helped bolster the global recovery, mitigate tail risks and lift asset prices.
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