Fund aims to be a long-term investor

China's $800 billion (762.56 billion euros; 650.25 billion) sovereign wealth fund aims to be a long-term international investor and increase its close work with partners to seek opportunities under the Belt and Road Initiative, its top executive says.

China Investment Corp President Tu Guangshao says cross-border investment is vital for China's economic growth and structural adjustment.

"As a financial investor, China Investment Corp is not seeking to control industry. Instead, we want to cooperate with partners at home and abroad to participate in global investment and create a win-win situation," Tu says.

His comments came after the latest move: China Investment Corp, Hopu Investment Management and Hillhouse Capital Management are holding talks about making a joint offer for Singapore-based Global Logistic Properties, according to news agency Bloomberg in November.

Tu says regional cooperation is an important part of globalization and the Belt and Road Initiative is a key development of regional cooperation. He adds that CIC will work closely with its partners to seek opportunities under the initiative.

There are challenges in cross-border investment - such as the relationship between economic benefits and social responsibility, labor and environmental protection - and difficulties in developing multilateral investment agreements, according to Tu.

Jiang Guorong, a managing director of UBS Group AG, says China's cross-border investment developed rapidly since 2015 because of a number of factors.

"Increasing demand for companies' business, increases in production capacity and output, overseas technology and capital and global asset allocation can explain booming cross-border investments," Jiang says.

Jiang says developed economies such as the United States and Europe have been popular destinations for cross-border investments, while countries along the Belt and Road will be increasingly attractive.

Ding Xuedong, chairman of China Investment Corp, says that CIC in the future will pay more attention to alternative investments - asset classes other than stocks, bonds and cash - and set up a sustainable development mechanism to prevent risks. Previously, CIC mainly invested in equities and fixed income.

According to CIC's 2015 financial report, China Investment Corp had assets totaling more than $810 billion under its management by the end of 2015.

caixiao@chinadaily.com.cn

(China Daily Africa Weekly 01/06/2017 page26)