China Wealth Fund has "No Confidence" in US Banks

CIC's Lou Says He Doesn't 'Dare' Invest in Financial Companies

(full article)

 

China Investment Corp. Chairman Lou Jiwei said he wouldn't "dare" to invest any of the sovereign wealth fund's $200 billion in foreign financial firms until governments establish policies on how to shore them up.

 

"China will continue to invest abroad, with focus on developing nations," he added. "However, I don't dare to invest in financial institutions now. I have no confidence in them."

 

(full article)

 

Impact:

CIC is the leader of the Sovereign Wealth Funds.  The lack of confidence in the US & European banks is shared worldwide.  Other Sovereign Wealth Funds will turn their attention to investments in hard assets, especially in developing economies with greater long-term growth prospects.  The western financial markets may be losing a core group of institutional buyers. This is not good for US & European Equities markets. Let's see what the Saudis and Middle Eastern Wealth Funds do next.

 

Millennium Lyon Asset Management

Email:  info@mlgcap.com

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