CIC to invest in Europe

China Investment Corporation (CIC), the country’s sovereign wealth fund, is looking to invest in the troubled European economy, Reuters reported. CIC’s chairman, Lou Jiwei, told the Boao Forum that even while “[t]he domestic market in Europe is not recovering very fast,” the fund is “seeking concentrated investment opportunities” on the continent. Lou praised some features of the European economic structure, saying that the European public-private partnership (PPP) model for infrastructure deals is more attractive than in the US. However, he cautioned that 2012 could see the overall global economy slow significantly as countries withdraw fiscal stimulus and tighten monetary policies. CIC has assets under management of around US$300 billion, and is charged with finding higher-yielding returns for part of China’s US$3 trillion foreign exchange reserves. It generated 12% profit in 2009, after a 2% loss the year before.