Diversification costs China billions in forex reserves

03/16/2009 | Financial Times (free content)

In early 2007, China's State Administration of Foreign Exchange made large bets on global equities, a diversification push that has cost the country billions of dollars of its foreign-exchange reserves. "SAFE has built up one of the largest US equity portfolios of any foreign government entity investing abroad, including the major sovereign-wealth funds," said Brad Setser, an economist at the Council on Foreign Relations. The exact figure has not been disclosed because SAFE discloses its holdings only to China's top leaders.

View Full Article in:

Financial Times (free content)

Published in Brief: