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The managers of China's board of currency reserves have defended their investment record. They say they avoided big losses during the global crisis, and are confident they can achieve stable long-term returns.
The State Administration of Foreign Exchange addressed concerns expressed on Internet forums about China's investments in U.S. mortgage financing agencies Fannie Mae and Freddie Mac. Washington had to make good on its implicit backing for the two government-sponsored entities during the sub-prime debt crisis, by bailing them out.
The administration says it hasn't bought shares of Fannie and Freddie. It also reassured that the delisting of the agencies' shares won't affect the value of their bonds, which are a favorite with central bank reserve managers.