The downgrade of the US ong-term credit rating has raised
concerns about the safety of China huge dollar-based assets, and
some analysts said these concerns might prompt the country to
adjust its foreign exchange portfolio.
CIC was set up in 2007 to manage part of the country foreign
reserves. Wang Jianxi, the
north face fleece, executive vice- president of CIC, said in
March that the fund had shifted its investment strategy to focus
more on assets such as property, timberland
womens, commodities and natural resources to seek higher
returns.
They argued that China should diversify its rapidly accumulating
foreign reserves by using them more strategically to acquire
resources and expand overseas investment.
The State Administration of Foreign Exchange (SAFE ), which
manages China $ 3.2 trillion in foreign reserves, has acquired a
3.04 percent stake in Munich Re, the world largest reinsurer by
the volume of premiums charged annually, according to the German < br /> group.
“The expectation of a faster revaluation of the yuan in the
future will trigger even stronger hot money inflows, red wing
coupon,” he said.
Analysts said that China might start to accelerate the
diversification of its foreign reserves by shifting toward
higher-yielding but riskier equity investments and away from
traditional fixed-income products.
US investor Warren Buffett, the largest shareholder in the
German company, raised his stake to more than 10 percent last
year.
SAFE has long followed a conservative investment strategy that
guarantees liquidity and safety, ugg
computers, investing mainly in low-risk, fixed income products such
as US Treasury securities and the government bonds of Japan and
some European nations.
China held $ 1.16 trillion in US government debt as of May,
according to the US Treasury Department.
“The rapid decline in the value of the dollar forced by China
selling will put China under greater pressure to revalue its
currency, women red
wing boots 8875 price, “said Ma Jun, greater China chief
economist for Deutsche Bank AG.
2011-08-16 09:38:42.0 Li XiangMunich Re stake signals trategic
shift on reservesinvestment, German reinsurance company, Munich Re
Group1811048827Companies2 @ usa/enpproperty–>%