In SAFE hands: China’s secret plan for a US$1 trillion reserves fund in Hong Kong
SAFE Investment Company, a Hong Kong-based fund manager, plays a significant role in managing a substantial portion of China's vast US$3.227 trillion foreign exchange reserves. This unassuming office, located in a 37-story tower overlooking Victoria Harbour, is one of the "golden flowers" established by the State Administration of Foreign Exchanges (SAFE) in 1997 to diversify reserves and maximize returns.
The existence of SAFE Investment Company gained renewed attention after the People's Bank of China (PBOC) announced plans to "significantly increase" the allocation of national reserves to Hong Kong. This move has sparked debate among analysts and lawmakers regarding the amount, rationale, strategy, and timing of this financial support, with estimates suggesting a potential tripling of the current 16% of reserves already held in Hong Kong.
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SAFE Investment Company, a Hong Kong-based fund manager, plays a significant role in managing a substantial portion of China's vast US$3.227 trillion foreign exchange reserves. This unassuming office, located in a 37-story tower overlooking Victoria Harbour, is one of the "golden flowers" established by the State Administration of Foreign Exchanges (SAFE) in 1997 to diversify reserves and maximize returns.
The existence of SAFE Investment Company gained renewed attention after the People's Bank of China (PBOC) announced plans to "significantly increase" the allocation of national reserves to Hong Kong. This move has sparked debate among analysts and lawmakers regarding the amount, rationale, strategy, and timing of this financial support, with estimates suggesting a potential tripling of the current 16% of reserves already held in Hong Kong.
via SCMP Full Text Feed
