China Investment Corporation - CIC

Definition of 'China Investment Corporation - CIC'


A government-sponsored entity of the People's Republic of China that seeks to invest in securities and commodities abroad. The CIC was initially funded with around $200 billion, which originated from the issuance of long-term treasury bonds by the People's Bank of China (PBOC). The bond proceeds were then converted into dollars through the foreign exchange market.

Investopedia explains 'China Investment Corporation - CIC'


The CIC provides a vehicle for investing the massive trade surplus that exists in the nation. The CIC will receive regular inflows of capital to help suppress this figure.

Speculations abound as to how the CIC will impact the world financial markets. China has been a large investor in U.S. Treasuries for many years, but hopes to earn a higher return on its foreign investments by diving into stocks, bonds and commodities such as oil and gold. Critics point to general corruption in China's political and economic system and wonder what kind of regulations will exist within the CIC to prevent it from being run in a similar fashion.

One of the first announced investments of the CIC was a 10% stake in U.S.-based private equity firm Blackstone Group, a move that sparked concern on Wall Street at the prospect of Chinese influence on U.S. corporate operations through the stock market.



comments powered by Disqus
Hot Definitions
  1. Identity Fraud Reimbursement Program

    A financial product that offers reimbursment for the costs associated with having been a victim of identity theft. These costs may include getting affidavits notarized for police and financial institutions, postage for sending certified mail to police and financial institutions, lost earnings resulting from time spent recovering one's identity, and legal fees.
  2. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  3. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  4. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  5. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  6. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
Trading Center