Chinese regulators have accused the country’s $575bn sovereign wealth fund China Investment Corp (CIC) of dereliction of duty and inadequate due diligence.
CIC responded to the accusations of mismanagement by saying that it will work on improving the due diligence process and the way it manages overseas investments.
The National Audit Office said that between 2008 and 2013 CIC made 12 investments abroad that resulted in losses.
In Addition, CIC’s choice of external manages wasn’t “very standard,” said the regulators.
The report also found irregularities CIC’s domestic units including Central Huijin, which sold an investment at the cost price in 2011.
In May this year it was reported that CIC and Russia’s Direct Investment Fund (RDIF) had plans to raise a $800m fund.
That vehicle will target infrastructure for senior living centres and to tap Sino-Russia tourism, RDIF CEO Kirill Dmitriev told Reuters.
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