|Home|News|Reports|Photo|Video|Agenda|Backgrounder|Forum|  
  News Maker

China prepares for forex-managing body

(Dow Jones)
Updated: 2007-03-03 16:47


Wu Xiaoling, vice governor of the People's Bank of China or the central bank, said China is planning a forex-managing entity to manage the huge amount of foreign exchange reserve in Beijing March 3, 2007. [CIIC file]
A top central bank official said Saturday China has begun preparations to create an entity that will manage China's massive foreign exchange reserves.

Vice Governor Wu Xiaoling said the entity will be related to Central Huijin Investment Co, a state agency that has invested foreign exchange reserves to recapitalize domestic financial companies.

China had $1.07 trillion in forex reserves as of the end of 2006 and has actively been exploring ways to diversify its holdings.

In remarks on the sidelines of the annual Chinese People's Political Consultative Conference, which opened Saturday, Wu said China was mulling creation of a fiscal stability fund.

No timetable was provided for creating the entity to manage the foreign exchange funds. Wu said the timing will depend on progress of the preparations.

Asked whether the forex-managing entity will be modeled after Singaporean investment agency Temasek Holdings, Wu said many options are being considered but declined to elaborate.

There has been speculation China would widen the yuan trading band as it deals with the problem of excess liquidity, but Wu said the issues are being viewed separately.

"The liquidity issue doesn't include the trading band issue," Wu said.

Wu said China should boost the development of corporate bonds but the size of the bonds should depend on how much corporations and the markets can handle.

"The government shouldn't set a specific limit," Wu said.



Question Session

The Supreme People's Court will send back cases to provincial courts for retrial if it evaluates that a death sentence has been passed without proper .

From our readers

 Overpopulation: One solution China could is to teach its people the dangers of making China even more overpopulated than it already is.

 Bria MiberiBerg:  Shanghai's charms are many, and one them is the presence of the street vendors.

 Joshua Young:  Thank you for this very well written article. I do agree with Mr Li Yongbo on the reception of the fans in Malaysia & Indonesia.

 Davy: I don't know how much adverse effect caused by the Global Warming

 Neil Hardie:  If the one child policy is ethically and morally correct, which is a question that only the Chinese people can decide and not me as a foreigner then...

 

Hot Forum Topics

 China Beware
 China: Economic Superpower
 Are farmers really being respected in china,nowadays?
 Chinese Role Models and Heroes
 Century debate: western VS eastern
 How's your life in a foreign country?

Photos
There is much hope among the public that the 2-week NPC session comes up with something of substance.
In the Limelight

Property law:
Draft property law equally protects private, public ownership

 

Corporate tax:
Unifed tax rate to apply to domestic, foreign-funded enterprises

 

Financial reform:
First village bank opens in Sichuan

 
· China prepares for forex-managing body
· Premier Wen vows to help markets
Slideshow

Migrant workers:
Government vows to protect rights of the country's 150 million migrant workers

 
· Get ready for the NPC, CPPCC sessions
· More efforts needed to protect environment
Video
· China outlines new policies for finance industry
· NPC, CPPCC media center opens
· 26th session of 10th NPC Standing Committee held
· Building Internet culture in China
· CPPCC session to open
Tidbits  
    Beijing well prepared for sessions
All-around measures in place to embrace the NPC, CPPCC sessions.
 
    Muslim political advisors feel at home in Beijing
Xie Shenglin had a pleasant chatting with a restaurant manager.
 
   
Copyright 1995-2006. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form.
Note: Browsers with 1024*768 or higher resolution are suggested for this site.
Registration Number: 20100000002731