Money

China fund head says will not cut Europe holding

(Agencies)
Updated: 2010-05-27 10:08

PARIS: China's sovereign wealth fund said on Wednesday it would not cut its investment allocation to Europe despite the fall in the euro, but would closely monitor how the continent tackles currency and regulation issues.

Related readings:  China-Europe political party forum ends in Beijing  CPC official calls for China-Europe common development  China hosting major talks with Europe, US  Market dips on EU debt crisis jitters - May 19

"We will keep our allocation in Europe," China Investment Corporation president and chief investment officer Gao Xiqinq said at the Organisation for Economic Co-operation and Development 2010 Forum in Paris.

"For a while, we were debating whether to underweight Europe, but our conclusion probably is not to underweight it," he said.

Gao said Europe remained a very important market, albeit with problems, and CIC would have to look carefully whether or not policies in the European Union on currency and regulations would allow the continent to return to previous growth rates.