China Largest creditor of US, Holding $681.9 Billion in Bonds, US Tries to Assure Chinese of Assets safety

China Largest creditor of US, Holding $681.9 Billion in Bonds,
US Tries to Assure Chinese of Assets safety

U.S. tries to assure China of its assets safety in U.S.

2009-03-14 00:20:24

·Obama's top economic advisor Friday said U.S. would be "sound stewards of the money we invest." ·Chinese Premier Wen said Friday he is "a little bit worried" about the safety of Chinese assets in U.S. ·China held 681.9 bln U.S. dollars worth of U.S. government bonds as of November.

WASHINGTON, March 13 (Xinhua) --

U.S. President Barack Obama's top economic advisor Friday tried to assure China's concern about the safety of its assets in U.S., saying the U.S. would be "sound stewards of the money we invest."

"This is a commitment that the president has made very clear --we need to be sound stewards of the money we invest," said Lawrence Summers, the president's director of the National Economic Council, in a speech at the Brookings Institution, a leading think tank in the United States.

Chinese Premier Wen Jiabao said earlier Friday he is "a little bit worried" about the safety of Chinese assets in the United States, urging the U.S. government to ensure the security of those assets.

"We lent such huge fund to the United States and of course we're concerned about the security of our assets and, to speak truthfully, I am a little bit worried," said Wen at a press conference after the close of the annual Chinese parliament session on Thursday.

China has invested its huge foreign exchange reserves in low-risk but low-yield assets, such as U.S. government bonds, to play it safe.

According to the U.S. Treasury, China held 681.9 billion U.S. dollars worth of U.S. government bonds as of November.

"China is indeed the largest creditor of the United States, which is the world's biggest economy. We are extremely interested in developments in the U.S. economy," said Wen, adding that he is expecting the effect of the measures taken by the U.S. government to counter the international financial crisis.

Summers, asked to react to Wen's concern during Friday's speech, noted that the United States had to utilize all resources available at present to jolt its economy from prolonged recession."

He also said the current crisis has led to an "excess of fear" among Americans that must be broken to reverse the downturn.

"Fear begets fear," said the former treasury secretary in Clinton administration. "What we need today is more optimism and more confidence."

Premier worries about safety of Chinese assets in U.S.

2009-03-13 10:32:45

BEIJING, March 13 (Xinhua) --

Chinese Premier Wen Jiabao said here Friday he is "a little bit worried" about the safety of Chinese assets in the United States, urging the U.S. government to ensure the security of those assets.

He urged the U.S. government to keep to its commitment and ensure the safety of the Chinese assets in the United States.

China has invested its huge foreign exchange reserves in low-risk but low-yield assets, such as U.S. government bonds, to play it safe.

"China is indeed the largest creditor of the United States, which is the world's biggest economy. We are extremely interested in developments in the U.S. economy," said Wen, adding that he is expecting the effect of the measures taken by the U.S. administration of President Barack Obama to counter the international financial crisis.

Wen reiterated China's principle of guaranteeing the "safety, liquidity and good value" of its foreign exchange reserves and diversifying the investment of the reserves.

"On the foreign reserves issue, the first consideration is our national interest," said Wen. "But we also have to consider the stability of the overall international financial system, as the two factors are interlinked."

"Currently, our reserves are generally safe," he said.

Meanwhile, Wen said the country's foreign reserves will be mainly used in overseas investment and trade, as the reserves are actually the liabilities of the central bank instead of fiscal fund.

He said in its bid to explore both domestic and overseas markets and utilize resources in both markets, China will seek make a better use of its reserves for the purpose of supporting domestic undertakings and improving people's living standards.

China's foreign exchange reserves hit a record 1.95 trillion U.S. dollars at the end of 2008, the largest in the world and far exceeding that of Japan, the second-largest foreign exchange holder with 1.03 trillion U.S. dollars.

According to the U.S. Treasury, China held 681.9 billion U.S. dollars worth of U.S. government bonds as of November.

Editor: Yao

Premier Wen rejects pressure on yuan's devaluation or appreciation

2009-03-13 10:40:59

BEIJING, March 13 (Xinhua) --

Chinese Premier Wen Jiabao said here Friday that no country in the world has the right to put pressure on the devaluation or appreciation of the Chinese currency.

"The exchange rate of China's currency, the yuan, should be decided by the country itself," Wen said at a press conference upon the conclusion of the annual session of China's top legislature.

The premier also criticized allegations that the yuan has been depreciating.

He said the Chinese currency has appreciated against the U.S. dollar by 21 percent since the currency was unpegged from the U.S. dollar in July 2005.

He admitted that the yuan may not have appreciated by a large extent against the U.S. dollar over the past year.

"However, the currency is actually appreciating in comparative terms, in light of drastic declines in currencies of many European and Asian countries," said Wen.

Such appreciation has put China's exporters under a lot of pressure, he added.

The premier reiterated the country's target is to keep the exchange rate of the yuan "basically stable" at a reasonable and balanced level.

Editor: Yao

U.S. gov't bonds one of choices for Chinese forex investment

2009-02-26 17:52:01

BEIJING, Feb. 26 (Xinhua) --

Purchasing U.S. government bonds was one of the choices for China's huge foreign exchange reserves, which stood at nearly 2 trillion U.S. dollars, said Liu Mingkang, Chairman of China Banking Regulatory Commission Thursday.

China manages its foreign exchange reserves under the principle of maintaining safety, liquidity and profitability, Liu told a press conference on measures of banking system against financial crisis.

Premier Wen Jiabao said in an interview with the Financial Times during the Davos forum that the country was exploring more efficient ways to use its reserves to boost domestic development.

China's reserves hit a record 1.95 trillion U.S. dollars at the end of 2008, the largest in the world and far exceeding those of Japan, the second-largest foreign exchange holder with 1.03 trillion U.S. dollars.

According to the U.S. Treasury, China held 681.9 billion U.S. dollars worth of U.S. government bonds as of November, and it bought another 14.3 billion U.S. dollars worth in December.

Editor: Fang Yang

U.S. gov't bonds one of choices for Chinese forex investment

2009-02-26 17:52:01

BEIJING, Feb. 26 (Xinhua) --

China manages its foreign exchange reserves under the principle of maintaining safety, liquidity and profitability, Liu told a press conference on measures of banking system against financial crisis.

Premier Wen Jiabao said in an interview with the Financial Times during the Davos forum that the country was exploring more efficient ways to use its reserves to boost domestic development.

According to the U.S. Treasury, China held 681.9 billion U.S. dollars worth of U.S. government bonds as of November, and it bought another 14.3 billion U.S. dollars worth in December.

Editor: Fang Yang

Buying U.S. bonds will depend on nation's need

2009-02-02 08:44:57

BEIJING, Feb. 2 --

Future purchases of United States Treasuries by China will depend on its need to protect the value of its foreign investments, Premier Wen Jiabao said on Saturday.

China is the single biggest foreign investor in U.S. Treasuries, with 681.9 billion U.S. dollars as of November, according to U.S. data.

"This is a very sensitive question and a question that President Barack Obama will want to ask," Wen said in London in response to a query over Chinese demand for U.S. government bonds.

"In recent years, our foreign reserves have been growing very fast. We are trying to bring more diversification to the holdings of the foreign exchange reserves. Buying US Treasury bonds is a major part of it," Wen said.

"Whether we will buy more U.S. Treasury bonds, and if so by how much, we should take that decision in accordance with China's own need and also our aim to keep the security of our foreign reserves and the value of them," he said.

Wen also stressed the importance of a stable yuan. "In the financial crisis, it is all the more important to maintain the stability of the yuan exchange rate in a reasonable and balanced level, this is not only in the interests of China but also in the interest of the world economy."

Wen is in London for talks with British Prime Minister Gordon Brown ahead of a G20 London financial crisis summit in April.

(Source: Shanghai Daily)

Editor: Lin Liyu

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