Finance minister: China to form state forex investment company

Source: Xinhuanet | 03-09-2007 13:49

BEIJING, March 9 (Xinhua) -- China is preparing for the establishment of a foreign exchange investment company directly under the cabinet, to make better use of its massive foreign exchange reserve, Finance Minister Jin Renqing said here on Friday.

"We will draw from international successful experience, such as the Temasek Holdings of Singapore, in the management of foreign exchange investment," the minister said at a press conference on the sidelines of the ongoing parliament annual session.

The new company will be under the direct leadership of the State Council, or the cabinet, instead of the Finance Ministry as it was reportedly to be, Jin said.

China's foreign exchange reserve reached 1.066 trillion U.S. dollars at the end of last year. The State Council has decided to separate the management of foreign exchange reserve and foreign exchange investment, Jin said.

The establishment of the new company is aimed to make more profits by means of foreign exchange investment, he said, adding that the regular management of foreign exchange reserve will continue to be done by the State Administration of Foreign Exchange.

Editor:Du Xiaodan