China CIC says European govt bonds not ideal investment

European government bonds are not ideal for long-term investors such as China Investment Corporation (CIC), the head of China's $410 billion sovereign wealth fund said on Monday.

Instead, CIC will look to infrastructure and real industrial projects will be attractive, Chairman Lou Jiwei told a meeting.

"For instance, the European bonds, like the government bonds of Italy and Spain, only central banks with certain responsibilities can invest, you know, for commercial investments, it's very difficult to make such investments for long-term investors like us," Lou said.

"Investment chances may lie in areas like infrastructure and industrial projects, and these projects can help economic recovery," he added.

CIC recently bought a minority stake in London water supplier Thames Water in an early sign that concerted efforts to drum up foreign investment in Britain's ailing economy may be paying dividends.