CIC says it will halt investment in Western banks

Lou Jiwei, the head of China's sovereign investment fund, China Investment Corporation (CIC), said that Western banks are a bad investment risk for the time being, the Wall Street Journal reported. At a meeting in Hong Kong on Wednesday, Lou said that the uncertainty regarding Western governments' policies towards their banking sectors and a lack of information about banks' conditions makes further investments unwise. CIC has already purchased shares in Morgan Stanley and Blackstone Group, but has seen its portfolio value steadily decline. Lou says CIC will continue to invest abroad, but may change its focus toward investing in emerging markets and diversifying its geographic exposure.