China's CIC says cuts European market exposure-paper
BEIJING, June 7 |
BEIJING, June 7 (Reuters) - China's sovereign wealth fund China Investment Corp has cut its stock and bond investments in Europe as it sees rising risks of a euro zone breakup, the fund's chairman was quoted as saying in an interview published on Thursday.
Lou Jiwei was quoted as saying that China was also unlikely to buy common euro zone bonds, should they eventually be issued as part of a resolution of the European debt crisis, as "the risk is too big, and the return is too low".
Lou told the Wall Street Journal in an interview that "there is a risk that the euro zone may fall apart and that risk is rising."
He did not detail the extent to which the fund, which manages around $410 billion in assets, had reduced its European investments, but the paper reported Lou saying that CIC had scaled back exposure across Europe's public asset markets.
Lou added that CIC was continuing to invest in Europe through private equity and direct holdings, including those in infrastructure assets.
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