Latest News:  
Beijing   Light snow    0 / -4   City Forecast

People's Daily Online>>China Business

China's US Treasury stock at 16-month low (2)

By Wei Tian (China Daily)

08:28, January 20, 2012

Dagong predicted that the US' debt-to-GDP ratio may continue to rise to 105.8 percent in 2012 from 100.7 percent in 2011. And the US Federal Reserve is likely to launch a third round of quantitative easing - injecting more money into the economy - in the middle of the year.

In December 2011, China's foreign exchange reserves declined on a quarterly basis for the first time in more than a decade, falling to $3.18 trillion, according to data from the People's Bank of China, the central bank.

"Although declining, the (foreign-exchange) reserve is still huge," Zhou Jingtong, a researcher with Bank of China Ltd, was quoted by China Business News as saying.

"Diversifying the portfolio and moderately reducing dollar assets is the only choice in the long term."

Investing in US Treasury bonds is "relatively safe" at the moment but is definitely not the best step to take, Zhou said. He said the chances are good that the securities will depreciate.

"Diversifying foreign reserves calls for varying the types of currencies and also diversifying assets," said Mei Xinyu, a senior researcher at the Ministry of Commerce's Chinese Academy of International Trade and Economic Cooperation.

Mei said the Chinese government should concentrate more on holding diverse classes of assets - by, for instance, investing in the US stock market or in stocks in other countries.

【1】 【2】


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. Chinese premier starts official visit to Qatar

  2. Spring Festival atmosphere spreads all over China

  3. China through foreign lens

  4. Dough modelling artist makes preparation for Year of the Dragon

Most Popular


  1. No one can say 'no' to peace
  2. Cautious end to a record year for foreign investors
  3. US sends subtle signal to Iran
  4. Farewell to double-digit GDP growth
  5. Actions speak louder than words
  6. New driving force for East Asian cooperation
  7. In love with luxury amid global gloom
  8. China should take fight to US over Iran
  9. How will HK go through economic difficulties in 2012
  10. US dollar is just a dirty shirt

What's happening in China

'I'm not a hero. I just want a quiet life'

  1. Keeping track of precious rail tickets
  2. Jewelry brands tarnished by poor quality products
  3. New media outlook in 2012
  4. New rule to fine taxi drivers for refusals
  5. Holiday spending puts some on edge

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance