CIC 'cuts Europe exposure'

China's $410 billion sovereign wealth fund China Investment Corp has cut its stock and bond investments in Europe as it sees rising risks of a eurozone breakup, the fund's chairman was quoted as saying in an interview published on Thursday.

Lou Jiwei was quoted by the Wall Street Journal as saying that China was also unlikely to buy common eurozone bonds, should they eventually be sold as part of a resolution of the European debt crisis, as "the risk is too big, and the return is too low". Lou said that "there is a risk that the eurozone may fall apart and that risk is rising".

China Daily - Agencies