The China Investment Corporation is the sovereign wealth fund responsible for managing part of China's massive 3.1 trillion dollars in foreign reserves. The CIC announced on Monday that it earned a 17.59 percent net annual return on its overseas portfolio. That was the best in a decade. Zheng Junfeng reports.

Seventeen-point-five-nine percent. That's the net annual return that the China Investment Corporation earned in 2017. It was also the fund's highest return since its establishment in 2007. The staggering growth raised the CIC's assets to over 940 billion dollars and its net cumulative annualized return to 5.94 percent for the past ten years. That return was more than double the yield of U.S. 10-year treasury bonds, of which China holds about 1.1 trillion dollars. The performance demonstrates that the CIC has done a good job diversifying China's forex holdings with better returns.

TU GUANGSHAO, VICE CHAIRMAN & PRESIDENT CHINA INVESTMENT CORPORATION "Our exceptional performance in 2017 was thanks to favorable global financial market conditions and our suitable investment strategies."

Forty-three-point-six percent of CIC's global investment portfolio was in public equities such as U.S. stocks by the end of 2017. Thirty-nine-point-three percent was in alternative assets, including infrastructure and real estate. Fixed income such as bonds accounted for 15.9 percent and cash 1.2 percent.

LI WENPING CHINA INVESTMENT CORPORATION "Our investment in public stocks enjoyed the fastest growth, followed by private equity and direct investment. Fixed income investment was the least profitable."

Nearly half of the CIC's overseas portfolio last year was in U.S. stocks and other assets. With the current trade tensions, the Trump Administration is scrutinizing Chinese investment in America. CIC President Tu Guangshao said such tensions are short term while China's investments are for the long term.

TU GUANGSHAO, VICE CHAIRMAN & PRESIDENT CHINA INVESTMENT CORPORATION "The Trump Administration encourages foreign investment to the U.S.. CIC's U.S. investment is only beneficial to the U.S. economy, companies and jobs. CIC is a financial investor, only seeking financial return, so it will not involve in any company management. CIC is a long-term investor with large investment and that's what many companies would love to have, especially infrastructure. So it's totally unnecessary to politicize CIC's investment in the U.S.."

Tu says that the CIC is working with Goldman Sachs in a 5-billion dollar fund, established in November 2017 to invest in U.S. manufacturing. So far, the fund-raising has been smooth.

ZHENG JUNFENG CGTN "The China Investment Corporation says it will continue to invest in the U.S. despite recent trade tensions. The Chinese sovereign fund says its investment in American stocks and the U.S. manufacturing sector is important in its portfolio and that China-U.S. trade and investment cooperation is for the long-term. Zheng Junfeng, CGTN, Beijing."