| Investment of China's huge foreign exchange reserves need to avoid chasing short-term market movements, which could become speculative. The central bank owned newspaper said its becoming increasingly challenging to invest China's huge amount of foreign exchange reserves because of turmoil in the world financial markets.
It said the PBOC will stick to diversification of China's forex reserves but will avoid chasing short term market moves. Lou Jiwei, chairman of China Investment Corp, the country's sovereign wealth fund, said in an interview with Wall Street Journal in June that there is too much risk in Europe's public markets and CIC has reduced its exposure to that...............................................Full Article: Source |