SHANGHAI - CHINA'S US$200 billion (S$294.5 billion) sovereign wealth fund will slow down its investing pace after being stung by major investments that turned sour in the world financial crisis, a report said on Tuesday.

China Investment Corp (CIC) has been adjusting its investment plans since September, said Mr Zhang Hongli, the company's vice-executive president, according to the official Shanghai Securities News.

The moves came amid turbulence on global financial markets as the world faces recession.

'Now, cash is king and as far as possible we will refrain from making investments,' Mr Zhang was quoted as saying by the newspaper.

CIC suffered nearly US$4 billion in unrealised losses from its US$5 billion investment in the bank Morgan Stanley made in December 2007, the report said.

It also owns more than 10 per cent of private-equity firm Blackstone, after increasing its original stake in October.

CIC bought its original stake in Blackstone just before the company's 31-dollar-per-share initial public offering in June 2007. Blackstone's shares are currently trading at less than a quarter of its IPO prices.

The fund has faced severe criticism at home for its investment choices after the collapse of global markets led to heavy paper losses - also known as unrealised losses, on investments that have yet to be cashed in.

CIC chief executive Lou Jiwei said he had lost confidence in western financial institutions during the global economic crisis and would not be investing in them, the Wall Street Journal reported in December. -- AFP