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China not exposed to Freddie Mac
By Zhang Fengming |
July 6, 2010, Tuesday
|
Online Edition
Online Edition
CHINA'S foreign exchange reserves are not invested in Freddie Mac and Fannie Mae stock, the State Administration of Foreign Exchange said today.
China has invested in Freddie Mac and Fannie Mae's bonds, whose repayments are normal, China's top foreign exchange regulator said today on its website.
The de-listing of the two United States agencies' shares had not affected the value of their bonds, which are popular among central bank reserves managers.
China will continue to closely monitor the development of the two companies to ensure the safety of China's forex assets, the currency agency said, quoting "safety, liquidity and added value" as the main principle.
China's mounting forex reserves, which sit at US$2.45 trillion (US$361 billion), secured "relatively good returns" in 2008 and 2009 when the global financial crisis was at its peak.
"We survived the test of the severe global financial crisis and secured the assets' quality," the forex body said.
"In any specific year, the investment returns on forex reserves may not be very high, but we are confident of securing stable and rewarding returns in the long term."
Europe remains one of the main investment markets for China's forex reserves, it reiterated.
"Europe has been and will be one of the major markets for investing China's foreign exchange reserves," said the top forex regulator.
China will stick to its diversification policy on its forex stockpile, the regulator reiterated.
China has invested in Freddie Mac and Fannie Mae's bonds, whose repayments are normal, China's top foreign exchange regulator said today on its website.
The de-listing of the two United States agencies' shares had not affected the value of their bonds, which are popular among central bank reserves managers.
China will continue to closely monitor the development of the two companies to ensure the safety of China's forex assets, the currency agency said, quoting "safety, liquidity and added value" as the main principle.
China's mounting forex reserves, which sit at US$2.45 trillion (US$361 billion), secured "relatively good returns" in 2008 and 2009 when the global financial crisis was at its peak.
"We survived the test of the severe global financial crisis and secured the assets' quality," the forex body said.
"In any specific year, the investment returns on forex reserves may not be very high, but we are confident of securing stable and rewarding returns in the long term."
Europe remains one of the main investment markets for China's forex reserves, it reiterated.
"Europe has been and will be one of the major markets for investing China's foreign exchange reserves," said the top forex regulator.
China will stick to its diversification policy on its forex stockpile, the regulator reiterated.
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