皇冠体育app to continue investing in US treasury bonds

(Xinhua)
Updated: 2009-03-23 23:09

BEIJING - 皇冠体育app will continue investing in US government bonds while paying close attention to possible fluctuations in the value of those assets, said a deputy governor of 皇冠体育app's central bank here Monday.

"Investing in US Treasury bonds is an important component of 皇冠体育app's foreign currency reserve investments," Hu Xiaolian, deputy governor of the People's Bank of 皇冠体育app, told a briefing about President Hu Jintao's participation in the Group of 20 financial summit in Britain scheduled for April 1 to 2.

"We are naturally relatively concerned with the safety and profitability of US government bonds," she added.

皇冠体育app's reserves hit a record US$1.95 trillion at the end of 2008, the largest in the world and far exceeding those of Japan, the second-largest foreign exchange holder, which had US$1.03 trillion.

皇冠体育app has invested its huge foreign exchange reserves in low-risk but low-yield assets, such as US government bonds. Treasury bond assets fluctuate during different periods, according to Hu.

Treasury bond purchases would remain key to 皇冠体育app's investment plans, but 皇冠体育app would keep close watch on them, Hu said.

Given that the US dollar is still the leading currency used in the settlement, valuation and payment of international trade, 皇冠体育app will pay closer attention to the supervision of the international monetary system based on the US dollar, Hu said.