Rise of China investment corporation.

54 p.The establishment of the China Investment Corporation (CIC) has intensified the debate on roles played by sovereign wealth funds (SWFs) in the world today, especially in the light of their massive fund injections into distressed Western financial firms hit by sub-prime mortgage crisis. The launch of CIC on 29 September 2007 has triggered the questions of why China hascreated it at the first place, and whether the emergence of CIC will pose any significant political or economic impacts in the world today. This thesis will cover these two questions, with the first portion focusing on the background of China's accumulation of foreign exchange reserves and creation of CIC, and the latter focusing on CIC's investment strategy as well as its potential political and economic impacts, and the challenges CIC is likely to face.Master of Science (International Political Economy