China is struggling to find a new head for its $500bn sovereign wealth fund after two top candidates declined the job out of fear it would prove a poisoned chalice, people with knowledge of the matter said.

China Investment Corporation has been without a chairman since March when its former head Lou Jiwei became finance minister. The search for a replacement appears set to continue as the latest nominee, Shanghai vice-mayor Tu Guangshao, is very reluctant to take the job, the people said. They added that Yi Gang, a central bank deputy governor, had already declined the post.

“Those with the right qualifications don’t want the job. Those who want the job don’t have the right qualifications,” said one CIC executive, who confirmed that it was having a hard time finding a new leader.