China's CIC targets mid-single-digit returns

China Investment Corp, the country's $200 billion sovereign wealth fund, is targeting "conservative" returns in the mid single-digits or slightly higher, Jesse Wang, CIC's executive vice president and chief risk officer, said on Wednesday.

"We think we're quite conservative at this time. I think it's about mid-one-digit, or slightly above one digit," Wang told a Credit Suisse conference.

China set up the sovereign fund last September to earn greater returns on its $1.53 trillion of foreign exchange reserves, most of which is invested in safe but low-yielding U.S. bonds.

The fund has bought a $3 billion stake in New York private equity firm Blackstone Group , and invested $5 billion in New York investment bank Morgan Stanley -- both worth nearly 10 percent of the companies.