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Central Huijin to merge into new forex investment agency

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-02 14:22

China plans to merge Central Huijin Investment Co Ltd, the central bank's
investment arm, into the country's new foreign exchange investment
agency, Securities Daily reported today citing a senior central bank
official.

Related readings:
Forex investment company to invest in Blackstone
Central Huijin to take over Everbright Group
Agency to invest forex reserves
State investment firm faces huge challenges

The new agency, tentatively called the State Investment Company, will
operate on a "commercial basis," said Wu Xiaoling, vice governor of the
People's Bank of China, the nation's central bank, at the First Annual
China Bankers Forum 2007, held over the weekend in Shanghai.

This is the first time that a senior bank official announced the
development direction of Central Huijin.

In the future, Central Huijin will become a wholly market-oriented
investment company to operate the national capital, Wu said.

Huijin was established in 2003. It has already used part of the foreign
exchange reserves to recapitalize major State banks and other State-owned
financial institutions.

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