| China's 1st forex firm to issue US$200b bonds |
SHANGHAI, Mar. 12 -- China's first foreign-currency reserves management company will issue yuan bonds worth US$200 billion to US$250 billion in the first batch after being established within this year, Shanghai Securities News said today.
The company, named "Lianhui" temporarily, will buy 20 percent to 25 percent of forex reserves from the central bank for investment, the report said.
It will conduct long-term strategic investment in energy firms, such as China National Offshore Oil Corp, at first.
It will be modeled on Singapore's Temasek Holdings Pte to manage part of the country's US$1 trillion-plus in forex reserves.
Lou Jiwei, promoted to the post of deputy secretary of China's Cabinet three days ago, will lead the new government agency to manage part of the currency reserves.
The government has decided to separate the ownership of the reserves and the management of the reserves into two agencies, Finance Minister Jin Renqing said last week.
The State Administration of Foreign Exchange will run the daily operation of the country's forex reserves, while the new forex investment company, under the State Council, will run the investment side.
China is the world's biggest forex holder and "the effective management of this vital resource is a crucial task," Jin said.
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