* CIC says eurozone debt crisis outlook still not optimistic
* CIC ready to invest more actively if EU more friendly
* Overseas investment return to be positive in 2012
* CIC to stick to diversified investment strategy in 2013
SANYA, China, Dec 16 China's sovereign wealth
fund China Investment Corp said it is "not optimistic" about the
outlook for the debt crisis in the eurozone, but will consider
investing more in the region if countries create a more friendly
Jesse Wang, an executive vice president at CIC,
said Europe needed more time to increase fiscal revenues to lift
itself out of the crisis.
"I think the outlook for the European debt crisis is not
optimistic yet," Wang said on Sunday at a forum in Sanya in the
southern tropical Hainan island.
"We have been investing actively in European countries and
if the heavily indebted countries and European Union can provide
a more friendly investment environment, I think we can invest
more actively in the future," Wang said.
Created in 2007, the $482 billion sovereign wealth fund was
tasked to earn higher returns from riskier investments using
part of China's foreign exchange reserves, which at $3.29
trillion are the world's largest.
China has been a port of call for fiscally troubled European
nations looking for new investment in their government bonds.
But it has not publicly stumped up more money in Europe's
bailout fund due to a belief that the bloc must put up more of
its own cash before it seeks help from others.
Wang also said that the fund will swing to a positive return
on overseas investment in 2012 from a loss in 2011, helped by
the loose monetary policies adopted by major developed
countries, which have boosted the global capital markets.
"I think this year's performance is better than last year
and we will definitely deliver a positive return on overseas
investment," Wang told reporters at the sidelines of the forum.
In 2011, the CIC suffered a 4.3 percent loss on its
international portfolio partly due to weakness on energy and
resource stocks as the nagging European debt crisis and U.S.
credit rating downgrades roiled markets.
In 2013, CIC would continue to adhere to its principle of
diversifying investments to disperse risks, Wang said.
CIC has set foot in a variety of overseas assets over the
past years, ranging from stocks in energy and resources to
private equity and hedge funds.
The fund is also interested in making direct investment,
some of which focuses on infrastructure projects, as those are
related to resource extraction and will help CIC retain a stable
return on investment.
Wang also predicted that CIC could manage more funds in the
future, provided that the fund continues to improve its
"As long as we can improve this investment platform, I think
the money that we can manage may exceed the current amount," he
"But as for whether the government will inject more money or
not in the future, there are too many factors that need to be
considered and it is not something we can decide."
The fund received $30 billion in new funding last year from
the State Administration of Foreign Exchange, the country's top
foreign exchange regulator, CIC said in its 2011 annual report.
Earlier in November, CIC's chairman and chief executive Lou
Jiwei told Reuters the fund would focus more of its investment
on Asia in twin bids to beat a rise in protectionism in the West
and boost exposure to rapid regional growth.