Reserves to support overseas expansions
Updated: 2013-01-15 10:54
China's foreign exchange regulator said a new unit will use the nation's $3.3 trillion in reserves to support Chinese companies' expansions overseas, signaling fresh outlets for the world's largest currency stockpile.
The State Administration of Foreign Exchange said on Monday that its co-financing office has been seeking an "innovative use" of the reserves and "supporting financial institutions in serving economic growth and their going-out strategy".
The Chinese government has been encouraging companies to buy assets overseas through a "going out" strategy to secure energy and commodity resources, buy technology and build internationally strong businesses.
"Given the large size of China's reserves, a small percentage change will mean a big amount," Zhang added
Zhang said only a small part of China's reserves are expected to be used by the new office.
The foreign exchange administration said its co-financing office will respect "market choice" and promote "fair play", according to a statement on its website.
The operations have "promoted China's economic and social development, expanded the scope of investment and the fields of foreign exchange reserves and promoted a diversified management approach," said the agency.
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