China forex chief signals investment shift

China forex chief signals investment shift

China Economy & Policy Corporate & Sovereign Strategy

By Taimur Ahmad China will forge ahead with efforts to diversify its $3.3 trillion foreign exchange stockpile into higher yielding assets, including emerging market bonds and currencies, amid expectations of continued poor returns from developed markets, its top forex official has said. In an exclusive interview with LatinFinance, Yi Gang, director of China’s State Administration of Foreign Exchange (SAFE), said that low US yields following successive rounds of quantitative easing (QE) had thrown up “a lot of challenges”. Yi, who is also a deputy governor of China’s central bank, said that emerging market assets, including those of Latin America, “are all in our investment sights”

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