BEIJING, June 7 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
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