Forex reserves may be hot topic

Policymakers are set to discuss plans to use the country's massive $1.95 trillion foreign exchange reserves at the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) meetings next month, experts said.

Analysts have warned that the strengthening dollar will not sustain as the US government is poised to issue more treasuries and pump more liquid into the financial system to bail out the fast-sliding economy.

It is important for China to avoid piling up more US Treasuries and begin to buy more energy and resource products while their prices are relatively low, said Zhang Ming, a researcher with the Institute of Finance and Banking at the Chinese Academy of Social Sciences.