China Investment Corp, which was established in 2007 and has invested a lot of china’s foreign reserves to attain more returns than the sovereign debt China traditionally brought with hard currency.

The Chairman of CIC, Lou Jiwei, in a meeting of regional business and political leaders in the southern Chinese province of Hainan, stated that though they are not enthusiastic about investing in Europe, they will still like to invest in the continent as the company is familiar with it and there are opportunities in the infrastructure sector.

He further noted that exports to emerging countries are the external factors boosting Europe’s economy and slow down in the economy of emerging countries like China and India, may lead to slowdown in their growth.

The global economy which is said to slow owing to the U. S problem in real estate market is going to be on the mend this year owing to strong recovery in emerging markets.

However, developing countries may have to increase rates and make use of foreign exchange rates to curb inflation, which is still said to be on the rise, as quantitative tightening may not help.

The US Federal Reserves have pumped hundreds of billions into the economy, intending to stimulate growth, but much of the liquidity has spilled into foreign markets, as investors seek higher returns in faster-growing regions.