Contributing to a Harmonious Society: China’s Sovereign Wealth Fund

Part of the International Political Economy Series book series (IPES)


This chapter 1 examines key factors that led to the establishment and subsequent organisation of one of the world’s largest sovereign wealth funds: the China Investment Corporation (CIC), which began operating in September 2007 after an earlier incarnation as a state-owned commercial vehicle, Huijin. In principle, national governments establish sovereign wealth funds (SWFs) to recycle the country’s foreign exchange reserves. In China’s case, establishment of the CIC was not simply to maximise return from foreign exchange reserves but was also with an eye to the imperative of maintaining a ‘harmonious society’ (hexie shehui).


Foreign Exchange Foreign Exchange Reserve China Security Regulatory Commission Harmonious Society Sovereign Wealth Fund 
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© Leong H. Liew and Liping He 2010

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