CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

SAFE: Europe is still a key investment market

07-07-2010 10:14 BJT Special Report:

BEIJING - Europe would remain one of the major markets for China's more than $2.4 trillion foreign exchange reserves despite the continent's sovereign debt woes, the country's foreign exchange regulator said on Tuesday.

"Europe was, is, and will be one of the major investment markets for China's foreign exchange reserves," the State Administration of Foreign Exchange (SAFE) said in a statement.

The regulator remained confident that Europe will overcome its current financial difficulties, the statement said. "We support the series of financial stability measures taken by the European Union and the International Monetary Fund," it said.

Europe is part of SAFE's investment portfolio because it adopts a diversified investment strategy, which ensures stable returns.

China has kept its foreign exchange reserve assets "generally safe" during the global financial crisis. "We have had quite good returns in 2008 and 2009, when the crisis was hitting (the global economy) the hardest," the statement said.

Book gains from rising asset prices have far outweighed valuation losses caused by the appreciation of the yuan, the agency said.

None of China's foreign exchange reserves were invested in high-risk assets such as the US subprime mortgage-backed bonds, which helped ensure the safety of its investment security, the SAFE said.

"China's foreign exchange reserves withstood the severe test of the global financial crisis," it said.

US mortgage finance giants Fannie Mae and Freddie Mac were taken over by the US government during the financial crisis and delisted from the New York Stock Exchange last month. Since then there had been criticism that China's investment in them was unwise.

But SAFE said its investments in bonds of the two companies have not been affected. "The reserves have not been invested in stocks of Fannie Mae and Freddie Mac and the interest and principal repayment of their bonds are proceeding normally; prices are stable," it said.

"We will closely monitor developments regarding them to safeguard the security of foreign exchange reserve assets," said the SAFE statement.

Editor:Xiong Qu |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program