But CIC Chairman Lou Jiwei said Monday that the fund wouldn't invest in European government bonds.

CNN: Q&A: Will China come to the EU's rescue?

Mr. Gao said that CIC is still heavily invested in the U.S. "I'm not diminishing it, but I'm not hanging everything in one tree, " he said.

WSJ: China Fund Chief Raps U.S.

"This implies that the main purpose of establishing CIC...still has a long way to go, " said Friedrich Wu, an adjunct associate professor at the Nanyang Technological University in Singapore who has written several research papers on the fund.

WSJ: China's CIC Works on Funding Mechanism

Mr. Wang said the move could also help remove hurdles posed by the Chinese bank stakes in CIC's dealings with overseas regulators.

WSJ: China's CIC Works on Funding Mechanism