Two Key Decisions for Chinas Sovereign Fund Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

China Investment Corporation (CIC) is a sovereign wealth fund China (SWF), created with $ 200 billion in authorized capital in September 2007 to diversify China's foreign exchange reserves and increase the risk-adjusted return on these assets. CIC was unusual in that it is strictly commercial orientation and market investment mandate to invest in foreign assets, but also served as the parent company 100 percent owned subsidiary, Huijin, which invested only in the key state of financial institutions in China. In addition, the fact that CIC was presented to SWF political problems for him, a shareholder of Chinese government, its direct investments and their governments and the global economy as a whole. The case concerned two decisions of the CEC across at the beginning of 2011: the first is how to best and most accurately articulate the relationship between CIC, Huijin, and Industrial and Commercial Bank of China (ICBC) to the Federal Reserve (Fed), so that ICBC could expand its business in the United States at the time as the release of CIC and Huijin from certain types of surveillance Fed. The second is to appoint the board of directors at Morgan Stanley, a company in which CIC has been directly invested about $ 6 billion and held 9.9 percent of possession. In addition, in the case of SWFs as a rule, their rights and responsibilities to the international community. "Hide
by Robert C. Pozen, Xiaoyu Gu Source: HBS 27 pages. Publication Date: June 28, 2011. Prod. #: 311137-PDF-ENG