(Corrects to say CIC will rely more on external managers in inefficient markets in eighth paragraph.)

Jan. 20 (mexico.) — China Investment Corp., the nation’s sovereign wealth fund, has had “early” talks for direct investments in Brazil and Mexico, Chairman Lou Jiwei said.

The sovereign wealth fund plans to increase direct investments this year and prioritizes such investments in developing markets, Lou said at a financial forum in Hong Kong today. CIC plans to be an “active, minority” shareholder in companies, instead of being involved in day-to-day operations, he said.

“In developing countries, the public capital markets are not as deep as developed countries,” Lou said. “We’re more interested in direct investments in developing countries.”

CIC, which held almost $300 billion in assets at the end of 2008, last year accelerated investments in resource-related companies, from U.S. power producer AES Corp. to Russia’s Nobel Oil Group, to hedge against rising inflation. Brazil is the second-biggest exporter of iron ore, while China is the largest buyer of the raw material.

“I believe CIC will continue to concentrate on resources, because it is the vehicle for China policy to secure resources for the country,” Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong, said in a Jan. 18 interview.