CHINA> National
CIC cautious about financial derivatives investment
Updated: 2009-03-21 19:22

BEIJING -- China Investment Corp. (CIC), the country's sovereign wealth fund, was taking a cautious stance toward investments and would not invest in financial derivatives that had no obvious relationship with the real economy, CIC chairman Lou Jiwei said here Saturday at the China Development Forum 2009.

Related readings:
 CIC sees 'good opportunity' for int'l investment
 CIC to increase investment in all classifications
 CIC fund seen making 5% profit
 China 'may have lost $80b in equities'

These derivative financial products should be phased out of the financial market, Lou said.

The CIC suffered big loss from its two major investments in the US private equity firm Blackstone and investment bank Morgan Stanley during the global financial crisis.

The CIC has invested 3 billion US dollars in the Blackstone  and 5 billion US dollars in the Morgan Stanley.

The CIC was set up in September, 2007, with an initial capital of 200 billion US dollars from the country's massive foreign exchange reserves, which stood at 1.95 trillion US dollars by the end of 2008.