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          BIZCHINA> Top Biz News
          China may use forex reserves to help oil firms
          (Agencies)
          Updated: 2009-02-17 10:53

          China may use forex reserves to help oil firms

          This file photo shows a crude oil wharf in Hainan province. China is considering using part of its huge foreign exchange reserves to help State oil companies explore for overseas resources, a report said on Tuesday. [CFP]


          China is considering using part of its huge foreign exchange reserves to help State oil companies explore for overseas resources, the Shanghai-based National Business Daily reported on Tuesday.

          Related readings:
          China may use forex reserves to help oil firms Forex reserves drop for first time since 2003
          China may use forex reserves to help oil firms Decrease in China's forex reserves good - expert
          China may use forex reserves to help oil firms Growth rate of forex reserve falls

          The newspaper said the national energy working conference, which closed earlier this month, had discussed the proposal.

          According to the proposal, the government would use a slice of China's $1.95 trillion in foreign exchange reserves to set up a special fund to finance offshore oil exploration.

          China's foreign exchange holdings are heavily invested in dollar-denominated assets, and Chinese researchers and officials are calling for a more diversified use of the reserves that are the world's largest.

          Fan Wenzhong, a State-owned assets supervision official in Chongqing city, said in an interview with the Shanghai Securities News on Monday that the government should use its reserves to set up a $200 billion overseas industrial fund and a $100 billion "social development" fund.


          (For more biz stories, please visit Industries)

           

           

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