Central Huijin Investment Ltd. is a Chinese sovereign fund company under the China Investment Corporation owned by the State Council of China.
Established in 2003 by the People's Bank of China, five years later it became a wholly owned subsidiary of China Investment Corporation, with its own Board of Directors and Board of Supervisors. Central Huijin's principal shareholder rights are exercised on behalf of the State Council. Central Huijin is an organization by which the Chinese government can act as a shareholder for the "big four" state-owned banks, thereby improving corporate governance and initiating reforms of the banking industry.
History
People's Bank of China
Central Huijin was established in 2003 by the People's Bank of China. It was created as a special purpose vehicle incorporated as a limited liability company. Shenyin & Wanguo Securities, and Guotai Junan Securities. This in turn gave Central Huijin's parent institution, the People's Bank of China, significant power in the securities industry despite not having formal legal oversight.
China Investment Corporation
In 2008, Central Huijin Investment was acquired from the State Administration of Foreign Exchange by the China Investment Corporation for roughly $67 billion. It manages more than two-thirds of CIC's assets.
Leadership
Initially, Guo Shuqing was the chairman of Central Huijin, and its general manager was Xie Ping, a former chief of the PBC's Research Bureau and director of its Financial Stability Bureau (also established in 2003). More recently under the CIC, the board of directors of Central Huijin has consisted of Ding Xuedong (Chairman & CEO), Li Jiange (Vice Chairman), and Bai Tao (Executive Director and President).
Subsidiaries
- Central Huijin Asset Management (100%)
- China Jianyin Investment (100%)
- China Everbright Group
- Everbright Securities
- China Everbright Limited
- China Everbright International
- China Everbright Bank
- China Galaxy Securities
- China International Capital Corporation
- China Investment Securities
Investments
As of 31 December 2020, Central Huijin held shares in 17 financial institutions: China Development Bank (holding 34.68 percent of its shares as of 2019), Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, China Everbright Group, Hengfeng Bank, China Export & Credit Insurance Corporation, China Reinsurance (Group) Corporation, New China Life Insurance Co., China Jianyin Investment Ltd., China Galaxy Financial Holdings Co. Ltd., Shenwan Hongyuan, China International Capital Corporation, China Securities, China Galaxy Asset Management Co. Ltd., and Guotai Junan Investment Management Co. Ltd. Central Huijin requires that it be able to seat one third of the directors of the boards on its banks.
- New China Life Insurance (32.25%)
- Ping An Insurance (2.65%)
- CSC Financial (33.29%)