Latest News:  
Beijing   Sunny/Overcast    28 / 16 ℃  City Forecast

Home>>China Business

Talent shortage restricting forex diversification: expert

By Cong Mu (Global Times)

08:07, May 28, 2012

China invests over one-third of its $3 trillion foreign exchange reserves in US Treasury bonds because the country lacks enough financial talents with international expertise to manage a diversification, Long Yongtu said at a forum in Nanjing, Jiangsu Province over the weekend.

China's former chief negotiator with the World Trade Organization (WTO) said that the country's foreign reserves have increased manifold since China's accession to the WTO, while the talent pool to manage such huge reserves has failed to catch up.

China's US T-bonds holding increased by $14.7 billion to $1.17 trillion in March, the largest in the world, the US Department of the Treasury said on May 15.

"The reason why we cannot buy into Morgan Stanley or Lehman Brothers is because we don't have the talents [who can manage the purchase]," Long said.

China Investment Corp, the country's sovereign wealth fund set up to help diversify forex investments, made a 60 percent paper loss on its $3 billion investment in US private equity firm Blackstone Group in 2008.

Besides the talent shortage, the size of China's forex investments also poses challenges for the decision-makers, Tan Yaling, president of the China Forex Investment Research Institute, told the Global Times yesterday.

"Because China's forex investments are very big, they often attract market attention, complicating the deals," Tan said.

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Chinese Navy survey vessel visits Indonesia

  2. Herchcovitch creations at Fashion Rio

  3. Stunning ways of bath

  4. Barca claim King's Cup

Most Popular

Opinions

  1. Much-needed cooling awaits China
  2. Why is Washington so scared of Confucius?
  3. Chance to peacefuly resolve Iranian nuclear issue
  4. What is the US' aim behind arms sales to Taiwan?
  5. Investment-driven growth no longer a viable option
  6. Summit can't stop NATO from being marginalized
  7. Easing liquidity not a cure-all
  8. As Beijing remains mum, trade relationships suffer
  9. Intentions behind Japanese right-wingers’ collusion with ‘World Uyghur Congress’
  10. Real intentions of US exercise in Middle East

What's happening in China

Love for heroic teacher flows online

  1. Solar firms rally against US antidumping probe
  2. Confucius Institute to promote Chinese food
  3. Illegal Vietnamese workers found in Anhui
  4. Parents protest school policy in Beijing
  5. Home prices to dip, but tumble unlikely

China Features

  1. High ticket prices, unaffordable landscapes
  2. Huangyan tensions
  3. 2012 Russia-China joint naval exercise
  4. 2nd Beijing International Film Festival
  5. Auto China 2012

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