Sovereign wealth fund 'ready to work with AIIB'

The sovereign wealth fund China Investment Corporation is ready to work with the new Chinese-led Asian Infrastructure Investment Bank to invest in projects around the region, a senior official said yesterday.

With a focus on investing in the infrastructure and hi-tech sectors this year, Liu Fangyu, head of CIC's public relations and international cooperation, said the fund was ready to support the AIIB where possible.

CIC saw a 41 per cent drop to 5.5 per cent in its overseas investment returns last year, partly due to falling commodity prices and foreign exchange losses incurred from a stronger US dollar.

That left the fund's overseas returns at a three-year low in 2014. Its net profit growth last year was also modest, up just 2.5 per cent to US$89.1 billion.

"If they meet our objectives for business and investment returns, we will definitely work with them," Liu said.

The AIIB, which is expected to rival institutions such as the World Bank and Asian Development Bank, was proposed by Beijing in 2013 to speed up economic development in Asia.