Abstract

In recent years，as Chinese foreign exchange reserve rapidly rising，the preservation and appreciation of assets facing great pressure. In 2007，the Chinese government set up Sovereign Wealth Fund named China Investment Corporation（CIC）. As an importantparticipants in the international investment，in order to get the optimal asset allocation，it is notonly rely on their own behavior，butalso is associated with the behavior of investment in the host country due to the potential size and the market effect of Sovereign wealth funds. Specifically，the investment is not only subject to the needs of our strategic configuration，also subject to the demand of the host country and the environment. Various financial protectionism，investment barriers and control are strengthened under the background of internationalmarket volatility and the uncertainty enhanced. It makes China’s Sovereign Wealth Fund face the huge pressures and challenges. Therefore，the key of strategies to achieve investment diversification and improve investment returns is to implement the“China dream”，to break through all kinds of barriers，to investbased on the host country environment，and to realize win-win investment in host countries. Meanwhile，the impetus and confidence of China to participate in the international economy are enhanced. In the outward investment process of sovereign wealth funds，it is particularly urgent to transmit the positive energy of“China dream”，invest in the win-win situation，grow in the inclusivity，and share the dividend of the economic development，in order tomake efforts to peaceful development of the world economy and the globalization.

This book argues that China’s Sovereign Wealth Fund should always keep its words in the foreign investment，and keep responsible attitude and self-confidence vision to make strategic investment. China’s Sovereign Wealth Fund should focus on its interests，at the same time pay close attention to the demand of the host country，under the guidance of harmoniouswin-win and inclusive growth mechanism strategies. China should givemore delivery value to the host country and invests in more positive externalities in order to play a positive role in promoting capital. It also should use multilateral coordination mechanism of institutions to optimize the investment environment，improve the harmony of both sides. At the same time，China’s Sovereign Wealth Fund should pay attention to sustain its good image of the large investment institution and guiding role of its own strategic model，in order to extend the depth and scope of investment cooperation.

This book is divided into four parts：strategy background and status quo，strategic elements，strategy content，strategy implementation and countermeasure. The first partmainly analyzes the strategy background and status quo，through the analysis on status quo，strategy and trend of global Sovereign Wealth Funds and status quo，opportunities and challenges of China’s Sovereign Wealth Fund. The second part deeply analyzes the affect around the diversification strategy elements，mainly including various barriers to investment of host countries and the uncertainty of international investment environment. In the third chapter，the core strategy—“harmonious investment”strat-egy—is extracted based on the international economic environment，CIC’investment experience and the strategic factor analysis. The last part presents the corresponding support system and auxiliary strategies of China’s Sovereign Wealth Fund“harmonious investment”strategy. Itmainly includes strategies of transparency selection，establishing cooperation alliance，signal transmission and investment constraint for “harmonious investment”，on the economic cycle basis of industry choice in developed markets and on the basis of investment choice of economic development demand in the emergingmarkets.

Key words：Sovereign Wealth Funds；Investment Strategy；Harmonious Investment