China should cap forex reserves at 1.3 trillion U.S. dollars: China banker

Subtle hints while the public and bulk of the trading world focuses on alternate 'realities.' Remember, China will be unable to sell US Treasuries without destroying price. This, however, does not mean they are exposed. China has been and will continue to create hedges until the risks outweigh the benefits.

Headline: China should cap forex reserves at 1.3 trillion U.S. dollars: China banker

China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.

The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.

China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Source: news.xinhuanet.com

From Bob