China's forex reserves not invested into Freddie Mac and Fannie Mae stocks

14:36, July 06, 2010      

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China has not invested its foreign exchange reserves into stocks of Freddie Mac and Fannie Mae, and the two companies' bond repayments are normal, according to China's State Administration of Foreign Exchange (SAFE) on July 6.

China had not bought stocks of Freddie and Fannie, and the delisting of the agencies' stocks has not affected the value of their bonds, which are a favorite with central bank reserve managers, said the SAFE.

Freddie Mac and Fannie Mae owned or guaranteed about half of the U.S. mortgage market. The U.S. government, which holds around 80 percent of the two companies, is their largest shareholder.

The delisting of the two companies stocks did not affect their bonds, and China will pay close attention to the situation and make sure that China's forex reserves are safe, SAFE said.

Responding to the question about whether China's forex reserves suffered losses during the global financial crisis, SAFE noted that China has kept its foreign exchange reserve assets "generally safe" and has witnessed good returns in 2008 and 2009.

By People's Daily Online


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