www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

   

Beijing to form investment company

(agencies)
Updated: 2007-03-10 10:12

Beijing is to create one of the world's biggest investing companies, with possible ramifications for global stock, bond and commodities markets, and might also affect how the US finances its huge budget deficits.

Chinese Finance Minister Jin Renqing said on Friday in Beijing on the sidelines of the ongoing National People's Congress session, that Beijing is trying to make more profitable use of its $1 trillion in foreign currency reserves. It is believed that most of the reserves are now parked in safe, but relatively low-yielding US Treasury securities and other dollar-denominated assets.


Chinese Finance Minister Jin Renqing gestures at a news conference during the annual session of the National People's Congress in Beijing March 9, 2007. [Reuters]

"We can achieve more profit from (wiser) investments (of the reserves)," Jin said at a news conference. "We are now in the stage of forming this new company."

The finance minister said China may follow the lead of Singapore's Temasek Holdings, which manages nearly $90 billion in government pension funds and other assets. It owns stakes in Singapore Airlines and Singapore Telecom, as well as in banks, real estate, shipping, energy and other industries in India, China, South Korea and elsewhere.

Analysts have speculated for some time that China would create an investment company, and officials have said repeatedly they want to make better use of the world's largest standing foreign currency reserves. Economists have suggested Beijing might allocate as much as $200-$400 billion to the new company, which could create one of the world's richest investment funds.

"They want to be more aggressive than what they do with current reserves," said economist Mingchun Sun at Lehman Brothers in Hong Kong.

"They could invest in higher-yield products - stocks, corporate bonds, maybe even commodities," Sun said. "Basically, the returns would be higher because the risk is higher."

A shift in China's investment strategy could change its purchases of foreign government debts, affecting a market that Washington relies on to help finance multibillion-dollar budget deficits, and might eventually push up US interest rates. But Lehman Brothers' Sun played down that risk. He said that with its reserves growing by as much as $20 billion a month, Beijing could afford to keep buying US government bonds while also channeling billions into new investments.

Even so, news of the Chinese announcement - along with an upbeat US jobs report, which reduced expectations the US Federal Reserve will cut its interest rates - came on the same day of a big drop in the price of the benchmark 10-year Treasury note on Friday. That pushed up its yield to 4.58 percent from 4.51 percent.

Jin gave no details of how the Cabinet-level company might invest the reserves, nor did he say what portion of the reserves might be channeled to the company or when it would start to operate. Spokespeople for Jin's ministry and China's central bank declined to give any other details.

US Treasury Secretary Henry Paulson, in an interview this week on the US television network ABC, rejected suggestions that changes in Chinese bond purchases could affect the United States economy. Paulson said Beijing's entire holdings of US Treasuries represent the equivalent of less than a single day's trading in Treasuries on global bond markets.

Chinese economists and media reports have suggested China might adopt more unusual investment approaches, ranging from stockpiling oil and other raw materials to spending more on social programs in order to encourage Chinese consumers to spend more domestically and reduce its dependence on exports.

The growth in China's reserves is driven by the rapid growth of its exports, which brings in dollars, euros and other foreign currencies, and by the billions of overseas investment dollars being poured into the country. The surge in money flooding in from abroad forces the central bank to drain billions of dollars from the economy every month by selling bonds in order to reduce inflationary pressures.

The precise composition of China's foreign currency reserves is a secret. But economists believe that as much as 75 percent is believed to be in US dollar-denominated instruments, mostly Treasuries, with the rest in euros and a small amount in yen.

Stephen Green, chief economist at Standard Chartered Bank in Shanghai, calculated that last year the central bank made a $29 billion profit on its Treasury holdings after paying interest on its own bonds and other expenses.

But even that represents a return of less than 3 percent on the $1 trillion in holdings. By contrast, Singapore's Temasek says it has averaged an 18 percent annual return since it was created in 1974.



Top China News  
Today's Top News  
Most Commented/Read Stories in 48 Hours
主站蜘蛛池模板: 精品一区二区三区在线播放 | 99热久久国产精品一区 | 国产中文字幕免费观看 | 色综久久 | 免费高清欧美一区二区视频 | 中文字幕在线乱码不卡区区 | 亚洲最新在线视频 | 久久久久香蕉视频 | 国模午夜写真福利视频在线 | 9久9久女女热精品视频免费观看 | 成人性色大片 | 日本一级高清不卡视频在线 | 综合欧美一区二区三区 | 日韩久久免费视频 | 国产日韩精品在线 | 欧美整片在线 | 国产夫妇精品自在线 | 亚洲欧美日韩色 | 国产成人精品日本亚洲网址 | 一级黄网站 | 亚洲精品成人网久久久久久 | 亚洲免费视 | 一级片久久 | 亚洲a在线播放 | 一级毛片情侣 | 亚洲另类激情综合偷自拍图 | 国产精品日韩欧美 | 国产成人18黄网站免费网站 | 2021国产成人精品久久 | 亚洲日本高清成人aⅴ片 | 免费观看久久 | 在线观看va | 欧美69色| 久久99亚洲精品久久99 | 国产又色又爽黄的网站免费 | 欧美精品毛片 | 手机在线精品视频 | 欧美一二三区在线 | 国产成人综合手机在线播放 | 九一色视频 | 欧美一级久久久久久久大 |