UPDATE 1-Norway's $860 bln oil fund holds back on Russian investment
* Fund had NOK 24.3 bln in Russian bonds at end 2013
* Fund's Russian stocks are worth NOK 22 bln
* Fund will seek to invest more in China -CEO
* Returns 1.7 pct in Q1 (Recasts, adds quotes from CEO)
By Gwladys Fouche
OSLO, April 30 (Reuters) - Norway's $860 billion sovereign wealth fund is holding off from making new investments in Russia because of the conflict in Ukraine, its chief executive said on Wednesday.
The fund usually looks to buy equities and bonds when markets are falling and sell when they rally, but it views the political turmoil over Ukraine a risk too far at the moment.
"In most other situations where there is market stress, we try to be a countercyclical investor," Yngve Slyngstad told Reuters. "Countercyclical does not really work well when the risk factors are of a geopolitical nature."
Slyngstad, who said on Friday that the situation in Ukraine had altered the risks affecting the fund's investments in Russia, added that the fund's starting point when there are geopolitical factors is to monitor the situation carefully rather than react immediately. Continuación...