China's forex reserves not invested in US subprime mortgages
None of China's $1.3 trillion in foreign reserves are invested in the US subprime mortgage industry which in recent weeks has bruised global markets, state press reported on Tuesday.
By Agencies |
SHANGHAI: None of China's $1.3 trillion in foreign reserves are invested in the US subprime mortgage industry which in recent weeks has bruised global markets, state press reported on Tuesday.
"China's official foreign exchange reserves have no holdings of US subprime securities," the China Daily quoted Wei Benhua, deputy director of the country's forex regulator, as saying.
The latest denial came after Liu Chunhang, a senior official with the China Banking Regulatory Commission, said last month that domestic commercial banks had limited exposure to US' subprime ills.
He said that they had set aside enough resources for dealing with the problems.
The massive defaults in US subprime mortgage market have triggered a wider credit market crisis and sparked world market volatility.
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Most of China's foreign exchange investment in the US is believed to be in treasury bonds, and the Asian giant is currently the world's second-biggest holder of such bonds after Japan, the newspaper said.China's forex reserves, already the world's largest, surpassed $1.33 trillion at the end of June, with about 70 per cent generally estimated to be held in US government notes.
Several major mainland lenders including Bank of China, Industrial and Commercial Bank of China and China Construction Bank, last month disclosed their US-mortgage risk exposure but all said the impact would be very limited.
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