# China May Start New Sovereign Funds to Invest in Oil, Gold: Reports



## nukz (25 April 2011)

China's central bank is considering setting up new investment funds to diversify holdings in the country's swelling foreign exchange reserves, the world's largest stockpile, local media reported on Monday.

The proposed funds include one or more to invest a part of China's foreign reserves in energy and precious metal markets and another that could intervene in foreign exchange markets, the New Century Weekly said, citing sources close to the central bank.

China's foreign exchange reserves surged to $3.05 trillion in the first quarter, heightening long-standing worries about how China can effectively manage the holdings and not become overly exposed to the U.S. dollar.

Read on : http://www.cnbc.com/id/42743681


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