New China reserves fund may use derivatives

The People's Bank of China (PBoC), the country's central bank, is setting up a new body to handle the investment of part of China's huge foreign exchange reserves, but the timing of the unit's opening, the scope of its investment activities and the identity of the senior management have yet to be unveiled.

The establishment of the unit was confirmed last month by China's finance minister, Jin Renqing, in a press conference held following the latest session of the National People's Congress (NPC)

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