Chinese wealth fund targets Asia

China's sovereign wealth fund will focus more of its $482 billion firepower on Asia in twin bids to beat a rise in protectionism in the West and boost exposure to rapid regional growth, Chairman and Chief Executive Lou Jiwei said.

The man charged with stewardship of a slice of the world's largest store of foreign wealth lauded the British approach to overseas investment in public sector projects as one for the world to follow and said the policy response to Europe's debt crisis was a reason to stay underweight in bonds and stocks there.

"As compared with other financial investors we feel that the scrutiny on us is a little more strict because of issues such as national security," Lou said, adding that while not a major issue yet, he detected rising concern among foreign regulators when CIC partnered with Chinese firms to make acquisitions.

Tensions between Beijing and Washington have recently ratcheted higher because of a series of trade actions against China by President Barack Obama, including his blocking of a privately-owned Chinese company from building wind turbines close to a United States military site and his challenge of Chinese auto and auto-parts subsidies in a World Trade Organization case.

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