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China Investment Corporation ( CIC ) ( Chinese : 中国投资有限责任公司; pinyin : zhōngguó tóuzī yǒuxiàn zérèn gōngsī ) is a sovereign wealth fund responsible for managing part of the People's Republic of China's foreign exchange reserves . CIC was established in 2007 with approximately US$200 billion of assets under management . At the end of 2014, the CIC had over US$740 billion in assets under management.
As of 2007, the People's Republic of China has US$1.4 trillion in currency reserves , while this had grown by 2013 to US$3.44 trillion. The China Investment Corporation was established with the intent of utilizing these reserves for the benefit of the state, modeled according to Temasek Holdings of Singapore. The state-owned Central Huijin Investment Corporation was merged into the new company as a wholly owned subsidiary company.
Special treasury bonds were issued to create the capital that the CIC needed. 1,550.35 billion yuan ($207.91 billion) was issued in this bond sale. The bond process was completed in December 2007. According to Lou Jiwei , the CIC needs to make a profit of 300 million Yuan every day just to pay the interest on the bonds and operation costs. The CIC paid its first interest on the bonds in February 2008 where it paid 12.9 billion yuan.