CIC attaches great importance to its social responsibility, abides by the laws and regulations of recipient countries and actively contributes to the local economic prosperity and development. Reasonable asset allocation framework is the basis for CIC to obtain long-term return after risk adjustment.
CIC mainly invests in overseas equity, fixed income and alternative assets. Alternative asset investment mainly includes hedge funds, private equity market, commodities and real estate investment. The investment field covers developed and emerging markets. The goal of controlling investment risk is to ensure the orderly operation of investment activities within the acceptable risk range and maximize the interests of shareholders by implementing active risk management, including undertaking and managing risks that can bring investment income, such as market risk and credit risk; Avoid and reduce risks that cannot bring benefits, such as operational risks.
According to the characteristics of its own investment model, CIC has determined its risk preference and risk tolerance, formulated its risk budget, and implemented a comprehensive risk management system and an internal control system based on COSO standard, an internal control management framework. Established a risk management organization system including the Executive Committee, the Risk Management Committee, the Chief Risk Officer, the Risk Management Department, the Legal Compliance Department and other relevant departments to effectively prevent operational risks and ensure the company's legal, compliant and stable operation. CIC mainly entrusts external fund managers to make overseas investments. The choice of external fund managers can be divided into open choice and directional choice. The selection criteria are: (1) financial stability, good credit standing, and risk control indicators meet the legal provisions of the country or region and the requirements of regulatory agencies; (2) The asset management business has reached a certain number of years, and the assets under management have reached a certain scale; (3) The employees meet the relevant qualification requirements of the country or region where they are located; (4) Having a sound governance structure, a sound internal control system and standardized business practices; (5) It has not been severely punished by the regulatory authorities of the country or region where it is located in the last three years.
In order to ensure the fairness, impartiality and authority of hiring external fund managers, the hiring can be divided into application, initial evaluation, re-evaluation, rate negotiation and contract agreement. CIC conducts primary selection according to the application documents, interview and management rate quotation provided by the applicant, and determines the final employee list after collective re-evaluation by internal and external experts.