China's Central Bank tapping new tools to manage investment: report
2011-12-12 10:53:39
The People's Bank of China is said to be developing a new vehicle to manage its $300 billion funds with an aim to maximize returns from its foreign exchange reserves, Reuters reported Friday, citing unnamed sources.
The source with the knowledge of the matter told Reuters that two funds will function under the vehicle. One fund will concentrate on investments in the United States and the other fund on Europe.
Although the details of the programme is under consideration, key personnel to manage the funds have been agreed upon, the report revealed.
According to the source, the vehicle would be affiliated with China's State Administration of Foreign Exchange. Shanghai would be the base of the venture and it may sell yuan bonds in the domestic market, the proceeds of which would be used to buy foreign currency from the banks for overseas investment.