China’s Auditor Says Sovereign Fund Mismanaged Assets

The National Audit Office blamed China Investment Corporation, the country’s $575 billion sovereign wealth fund, for some of its investments leading to losses. The country’s top auditor did not, however, specify the size of the loss. Investment losses could widen According to results of an audit conducted last year by the National Audit Office, dereliction of duty by managers, and inadequate due diligence and post-investment management were identified in 12 investments made abroad by China Investment Corporation, the world’s fourth-largest sovereign wealth fund. The report released today on the auditor’s website, however, didn’t identify the individual cases. However it pointed…