"I think the outlook for the European debt crisis is not optimistic yet," Wang said on Sunday at a forum in Sanya in the southern tropical Hainan island.
"We have been investing actively in European countries and if the heavily indebted countries and European Union can provide a more friendly investment environment, I think we can invest more actively in the future," Wang said. Created in 2007, the $482 billion sovereign wealth fund was tasked to earn higher returns from riskier investments using part of China's foreign exchange reserves, which at $3.29 trillion are the world's largest.
China has been a port of call for fiscally troubled European nations looking for new investment in their government bonds.
But it has not publicly stumped up more money in Europe's bailout fund due to a belief that the bloc must put up more of its own cash before it seeks help from others.
Wang also said that the fund will swing to a positive return on overseas investment in 2012 from a loss in 2011, helped by the loose monetary policies adopted by major developed countries, which have boosted the global capital markets. "I think this year's performance is better than last year and we will definitely deliver a positive return on overseas investment," Wang told reporters at the sidelines of the forum.
In 2011, the CIC suffered a 4.3 percent loss on its international portfolio partly due to weakness on energy and resource stocks as the nagging European debt crisis and US credit rating downgrades roiled markets.
In 2013, CIC would continue to adhere to its principle of diversifying investments to disperse risks, Wang said.
CIC has set foot in a variety of overseas assets over the past years, ranging from stocks in energy and resources to private equity and hedge funds.
The fund is also interested in making direct investment, some of which focuses on infrastructure projects, as those are related to resource extraction and will help CIC retain a stable return on investment.
Wang also predicted that CIC could manage more funds in the future, provided that the fund continues to improve its investment capability.
"As long as we can improve this investment platform, I think the money that we can manage may exceed the current amount," he said.