Latest News:  
Beijing   Sunny/Cloudy    33 / 23 ℃  City Forecast

Home>>China Business

US Treasury bonds still China's best choice (3)

(People's Daily Online)

08:12, July 24, 2012

Do not put all the eggs in one basket

Since last year, State Administration of Foreign Exchange has repeatedly stressed that taking into account the huge holding of U.S. debts, foreign exchange reserves investment should be diversified, so as to avoid the risks brought by foreign exchange devaluation.

"In addition to the purchase of U.S. debts, we can also buy some European bonds and Japanese bonds. We should not put all eggs in one basket,” Li suggested.

He said China should control growth in foreign exchange reserves, adjust the foreign exchange policy to achieve the balance of international payments and turn foreign exchange assets into real assets.

Since the debt investment incomes are generally lower than equity investments, the industry generally recommends that the future should not only reduce the proportion of U.S. debt in foreign exchange reserves investment, but also to reduce the proportion of the debt investment in the foreign exchange investment.

Experts said that despite holding U.S. Treasury bonds has certain risks, in the volatility of the global economy, the U.S. debt is almost the products that best combines safety and profitability.

Read the Chinese version at: 中国增持美债是“无奈之选”, Source: People's Daily Overseas Edition, Author: Cao Jiali and Liu Minwen

【1】 【2】 【3】


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. APF servicemen in training

  2. Heavy monsoon rain hits Lahore, Pakistan

  3. No hard landing for Chinese economy

  4. Weifang kite festival attracts international hobbyists

  5. Zhang Ziyi and Sa Bening's love affair comes to light

  6. Crazy man goes wild in public

Most Popular


  1. West wrong on Chinese public's Syria view
  2. Clinton’s Asia trip takes economic turn
  3. Will SE Asia become a battleground?
  4. Credit stimulus not panacea
  5. Reforms are promising, but not perfect
  6. Raise awareness of domestic brands
  7. Ivy League not gold standard for teachers
  8. No need to panic about slowdown in China
  9. Commentary: Health of stock market
  10. S. China Sea tensions stirred up with outside help

What's happening in China

Fish farm in waters at Meiji Reef of South China Sea

  1. Hospital director arrested for raping 2 minors
  2. 5.23m yuan public toilets at tourism site criticized
  3. Strong tropical storm approaches S China
  4. Missing crew confirmed dead after helicopter crash
  5. Court finds contract masked personal loan

China Features

  1. You and me, in Beijing to understand China
  2. Guided-missile battalion conducts training
  3. Main ingredient of Evian toner is water
  4. DPRK celebrates top leader's Marshal title
  5. Cangshan Mountain in Shanxi province

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai