BEIJING, Feb 2, 2007 (AFP) – China plans a special firm to manage one fifth of its forex reserves, laying the foundations of a behemoth that will handle more money than the biggest mutual fund in the world, state media said Friday. The State Foreign Exchange Investment Company is expected to be in charge of 210 billion dollars, or more than the Growth Fund of America’s approximately 160 billion dollars of assets, according to the reports.
“The State Council proposed at the national finance work conference (last month) to set up a special forex investment institution,” an official with Central Huijin Investment Co, a government investment arm, told AFP.
The State Foreign Exchange Investment Company will get its 210 billion dollars as part of a plan to divide China’s 1.07 trillion dollars of reserves into three portions, the Southern Weekly paper said, giving no sources.
Another 100 billion dollars will be allocated to Huijin, according to the Southern Weekly. The Huijin official told AFP he knew nothing about it.
The remaining 700 billion dollars will remain under management by the State Administration of Foreign Exchange, according to the paper.
The State Foreign Exchange Investment Company will raise funds