China's $410 billion sovereign wealth fund China Investment Corp received $30 billion in new funding last year, a top executive said, declining to say if the additional money would pay for asset purchases in crisis-hit Europe. Jesse Wang, an executive vice president at CIC, said the fund considered risk and rewards when buying assets and this modus operandi applied to Europe.
Sources told Reuters in December that CIC could get as much as $50 billion in new money to help it move quickly in overseas purchases. "Where there are financial assets with low valuations and reasonable returns, all risks considered, we will buy," Wang said on Sunday on the sidelines of a meeting preceding China's annual parliament session starting on Monday. "Just because Europe has its problems does not mean we will change our method of assessment."
Cash-rich China with its $3.2 trillion foreign exchange reserves, the world's largest, has been a port of call for fiscally troubled European nations looking for new investment in their government bonds. But like other nations, China has not publicly stumped up more money in Europe's anti-crisis bailout fund due to a belief that the euro bloc must put up more of its own cash before it seeks help from others.
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