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. In May 2007 it was reported that CIC was to buy a $3 billion stake in the Blackstone Group. Special national debt bonds were issued to create the capital that the CIC needed. 1,550.35 billion yuan 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. In 2008, CIC joined the International Forum of Sovereign Wealth Funds and signed up to the Santiago Principles on best practice in managing sovereign wealth funds. In 2010, CIC established a new subsidiary, CIC International Co in Hong Kong and appointed Lawrence Lau as its chairman. In 2011, CIC established its first foreign office in Toronto, choosing it over financial centres such as New York or London as its first office. Felix Chee will be the chief representative officer In September 2013, the fund acquire a 12.5% stake in Russian potash fertiliser company Uralkali for a rumoured $2 billion. In March 2014, the CIC acquired a $40 million stake in iKang Health Group. In October 2015, the CIC provided capital in a deal between Carnival Corporation and China State Shipbuilding Corporation In October 2015, CSSC Carnival Cruise Shipping, a joint venture between the CIC, the China State Shipbuilding Corporation, and Carnival Corporation & plc, was founded, with operations expected to commence in 2019. In January 2017, acquired a 45% stake in the office skyscraper 1211 Avenue of the Americas, New York City, which valued the building at $2.3 billion. On May 31, 2017, it was reported that China Investment Corp. was in talks to possibly purchase Logicor, a European warehouse company, from The Blackstone Group L.P. for $13.49 billion. Other companies were also bidding for Logicor.
Governance
The management and board of the China Investment Corporation ultimately reports to the State Council of the People's Republic of China. The China Investment Corporation is seen as being "firmly entrenched" in the political establishment as the composition of its board of directors implies "considerable influence on the part of China’s Ministry of Finance."
