Investment Updates News
- Huijin may manage forex reserves
Date: 2-Feb-2007 Sources: (Shenzhen Daily)
THE government is actively looking at a plan to issue yuan bonds and use the proceeds to buy foreign exchange reserves from the central bank and invest then in higher-yielding assets abroad, domestic media said Thursday.
The China Securities Journal quoted an unnamed source it described as authoritative. It gave no details of the possible size of any bond issue, which it said could happen this year.
China's top policymakers agreed last month to actively explore ways of investing the country's US$1.06 trillion in reserves, the largest stockpile in the world.
Academics have been busy debating since then what model China could adopt to manage the reserves more aggressively.
One option would be to restructure the central bank's investment arm, Central Huijin Investment Co., and have it report to the State Council, or Cabinet.
According to this line of thinking, Huijin, set up in late 2003 to manage funds injected into State-run banks, would be transformed into an agency similar to the Government of Singapore Investment Corp., which manages more than US$100 billion of the city-state's assets.
Sponsor Results:
