Lou Jiwei, Chairman of CIC said in London that China’s sovereign assets fund, China Investment Corporation (CIC) will serve as a stabilizing factor in the global financial market with its long-term investment strategy.

Lou Jiwei, who controls a US$200 billion investment fund, said, ‘We will adopt a long-term and prudent investment principle and a safe, professional portfolio strategy that adapts to market changes, which will put emphasis on a rational match of returns and risks.

‘Judging from our investment strategy and scale, we are unlikely to present a major impact on the international market.’

That is because one-third of CIC’s US$200 billion was used to purchase Central Huijin Investment Company while another third is being put aside to be invested in state-owned banks that are to be restructured into joint-stock companies. The remainder of the capital, some US$70 billion, is available for overseas investing, Lou told the London City’s financial leaders at a banquet given in his honor. The new sign of the City of London is shown in our illustration.

He said, ‘Even the 70 billion dollars must be invested by batches, in a wide range of portfolios, over which we do not seek control.’

He said CIC is more than happy to learn the managerial expertise and best practices of financial institutions, including those in the City of London, particularly the proven experiences concerning sovereign wealth funds.

Lou Jiwei said, ‘As a manager of sovereign wealth funds, I do not expect the over-use of national security as a pretext for investment protectionism and financial protectionism to damage the stability of international economy and finance.’

Lou is leading a six-member delegation on his three-country tour. After his three-day Britain visit, he will go to France and Singapore.
Source: China View