China Investment Corp, the country’s sovereign wealth fund, will no longer risk investing in western financial institutions because of concerns about their viability and a lack of consistency in their governments’ policies, according to its chairman.
“Right now we don’t have the courage to invest in financial institutions because we don’t know what problems we will put ourselves into,” Lou Jiwei said on Wednesday.
Mr Lou contrasted recent shifts in US regulatory and government policy and efforts to rescue ailing banks with the “clearer policies” of some developing countries, where he said CIC was still “actively” pursuing investment opportunities.
“My confidence should come from government policies. But if they are changing every week, how can you expect that to make me confident?” he said at a Hong Kong meeting of the Clinton Global Initiative.
Mr Lou’s comments came before talks that are set to start in Beijing on Thursday between Hank Paulson, US Treasury secretary, and Chinese officials.
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