SAFE Investment Company (China)

What is ‘SAFE Investment Company (China)’

The SAFE Investment Company is the Hong Kong branch of the Chinese sovereign wealth fund. The SAFE Investment Company is a private company, however officials from the Chinese State Administration of Foreign Exchange (SAFE) department serve on its Board of Directors. The fund is set aside primarily as a foreign currency reserve.

Explaining ‘SAFE Investment Company (China)’

As of March, 2010, China holds approximately USD$2.45 trillion in foreign currency reserves. The SAFE Investment Company is able to invest in a wide variety of instruments including foreign and domestic equities and fixed income securities. The chief objectives of the SAFE Investment Company are to gain investment returns, increase diversification of holdings and to reduce China’s exposure to fluctuations in the value of the U.S. dollar.

Further Reading

  • China as a creditor: a rising financial power? – [PDF]
  • China challenges global governance? Chinese international development finance and the AIIB – [PDF]
  • China's regulatory framework for outward foreign direct investment – [PDF]
  • A principal–agent analysis of China's sovereign wealth system: Byzantine by design – [PDF]
  • Causes and countermeasures against frequent occurrence of Coalmining accidents in China Today: based on the standpoints of safety inputs – [PDF]
  • Improving Cross-Border Investment Regulation: A Case Study of China's Largest and Least Known Sovereign Wealth Fund – [PDF]
  • High Saving Rate, High Investment Rate and Chinese Economic Growth During Labour Transition [J] – [PDF]
  • Operating in an inharmonious world: China Investment Corporation – [PDF]