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China's sovereign wealth fund nearly doubled its net profits last year, to almost 42 billion U.S. dollars. China Investment Corporation manages the country's 300 billion yuan fund.
According to its annual report, net profits of CIC increased to 41.7 billion U.S. dollars in 2009, a massive increase from 23.1 the year before.
The return rate on investment capital surged to 12.9 percent in 2009, from 6.8 percent in 2008.
Cross-border investment returns shook off its minus rate by gaining double-digit growth to 11.7 percent.
Since May 2009, the CIC has increased investment, with its global investment volume reaching 58 billion U.S. dollars.
Experts say getting the timing of investments right will result in the largest profits for the company.
Teng Tai, Chief Economist of Minsheng Securities said "Because it will take longer to see returns on some private equity investments. So we assume that lots of profitable private equity projects are not due yet. Based on its performance in 2009, we believe these investment will yield higher returns."
Founded in September 2007, the CIC has registered capital of 200 billion U.S. dollars. The capital was allocated by the Finance Ministry through issuing 1.55 trillion yuan of special bonds, in exchange for the same amount of foreign reserves from the central bank. The CIC is seeking another 100 billion U.S. dollars of new funding.