China to Use Reserves to Finance Overseas Investment Deals

China’s foreign-exchange regulator said a new unit will use the nation’s $3.3 trillion in reserves to support Chinese companies expanding abroad, signaling fresh outlets for the world’s largest currency stockpile.

The State Administration of Foreign Exchange said today that its Co-Financing office has been seeking “innovative use” of the reserves and “supporting financial institutions in serving China’s economic growth and going-out strategy.” Separately, the head of China’s sovereign-wealth fund said it’s increasing allocations to assets including infrastructure to cut its reliance on U.S. debt.