Source: International Herald Tribune

BEIJING: China is creating an investment company to make more profitable use of its US$1 trillion in foreign currency reserves, the finance minister said Friday, in a move that could change the flow of billions of dollars in global markets.

Finance Minister Jin Renqing gave no details of how the Cabinet-level company might invest the reserves, which are believed to be mostly in safe but low-yielding U.S. Treasury bonds. He also did not say what portion of the reserves might be channeled through the company or when it would start to operate.

"We can achieve more profit from the investments," Jin said at a news conference. "We are now preparing the organization of this new corporation."

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Posted by pichu at March 9, 2007 11:13 AM