China CIC says commodity prices outpacing global recovery

BEIJING, March 4 Wed Mar 3, 2010 11:06pm EST

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BEIJING, March 4 (Reuters) - China Investment Corp [CIC.UL], China's sovereign wealth fund, believes global commodity prices are outpacing the global economic recovery, fuelled by loose monetary policies worldwide, a top official said on Thursday.

"Last year commodity prices rose by relatively big margins," Jesse Wang, CIC executive vice president and chief risk officer, said on the sidelines of the Chinese People's Political Consultative Conference in Beijing.

"Personally, I think the prices are a bit too high relative to the strength of real economic recovery," he said, adding that high commodity prices have complicated CIC's investment efforts this year.

Wang said CIC has now invested most of its money, and would have to adopt a more flexible asset allocation strategy if it does not receive more funds from the government. (Reporting by Samuel Shen and Doug Young; Editing by Jacqueline Wong)

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