China Investment Corp cuts investments in Europe

China Investment Corp cuts investments in Europe
Seeing rising risks of a euro zone breakup, China Investment Corp (CIC), which is China's USD410bn sovereign wealth fund, has decided to cut its stock and bond investments in Europe. CIC Chairman Lou Jiwei cited low returns being unable to commensurate for the increased risk as the main reason for withdrawal. Additionally, Lou also said that China is unlikely to purchase common euro zone bonds should they eventually be sold as part of a resolution of the European debt crisis.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China? 

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