China sovereign fund to cut exposure to public markets

Still keen: Even as trade friction between China and the US is rising, Tu says CIC still wants to explore direct investments in the US, which could also help deepen economic ties. — Bloomberg

BEIJING: China’s US$814bil sovereign wealth fund plans to expand investments in areas such as real estate, hedge funds, infrastructure and private equity for more stable returns, as it reduces exposure to volatile public markets.

China Investment Corp (CIC), which recently sold its shares of Blackstone Group LP, is seeking to boost alternative and direct investments to 45% or more of its overseas portfolio in the next three years, from about 38% at the end of last year, president Tu Guangshao said in an interview in Beijing.