China Investment Corp’s chief risk officer, Jesse Wang (left), says the $200 billion sovereign wealth fund acts like a pension fund and is interested in only conservative investments, as it aims for single-digit investment returns. Low-risk with Chinese characteristics might explain their investments in Morgan Stanley and private equity house Blackstone Group. Dubai International Capital, another sovereign wealth fund, is reportedly talking with Virgin Group. Britain’s Times says Richard Branson’s not-so-conservative empire might sell the $12 billion fund a stake in Virgin Active, which runs health clubs, or a mobile phone joint venture in the Middle East to raise funds.

Regional bank National City said this week it was looking at strategic alternatives, and the Wall Street Journal reports one is a sale of itself to rival KeyCorp. Citing sources familiar with the matter, the paper said the combined company would receive a capital infusion from private equity firm Kohlberg Kravis Roberts & Co. A deal may make financial sense for the two Cleveland banks, but the consolidation/contraction of business could also darken the clouds over the economically challenged midwest city.

Deals of the Day:
* Dutch staffing company Randstad launched its 3.3 billion euro ($5.2 billion) bid for Vedior, seeking to create the world’s second-biggest jobs company after Adecco. The acceptance period for its cash-and-stock offer is set to end May 9.
* Toyota Motor is considering raising its stake in Fuji Heavy Industries, a source familiar with the matter said.
* Star Cruises said it has agreed to join forces with Alliance Global Group to develop and operate hotel and casino complexes in the Philippines. Star Cruises will pay $335 million for half of the equity interest in Alliance Global’s Travellers International Hotel Group Inc, which has applied for a provisional gaming license to participate in a Philippine hotel and entertainment resort development.
* Italy’s Italcementi said it had sold its Turkish assets to Russia’s Sibirskiy Cement for 600 million euros ($937.6 million) in cash and stock.
* Television and movie content firm UTV Software Communications may take a 20 percent stake in its business news channel, called ‘UTVi’, within 3-6 months, UTV’s Chief Executive Officer said.
* British Gas owner Centrica said its U.S. arm had agreed to buy U.S. industrial electricity supplier Strategic Energy for $300 million in cash.