China’s official in charge of investing the world’s largest foreign-exchange reserves left the government agency that oversees the holdings, according to a person with direct knowledge of the situation.
Zhu Changhong is no longer an employee at the State Administration of Foreign Exchange, said the person, who asked not to be identified because the matter has not been publicly announced. Zhu left Pacific Investment Management Co., manager of the world’s largest bond fund, about four years ago to become SAFE’s head of investment for the reserves.
The stockpile of reserves has grown by more than 50 percent to $3.82 trillion since the end of 2009 as China intervened to control appreciation in the yuan while capital flowed into the country. Holdings of U.S. Treasuries have increased to $1.32 trillion as of November, up about 47 percent from 2009, according to U.S. figures.
SAFE didn’t immediately respond to a faxed request for comment.
China Business News reported earlier today that Zhu resigned, citing an unidentified person. Zhu, 44, has diversified China’s investments, reducing the proportion of U.S. Treasuries and expanding holdings of U.S. corporate bonds, stocks and real estate as well as bonds of other countries, according to the China Business News report.
Zhu holds a doctorate in physics from the University of Chicago and received his undergraduate degree in the same subject from the University of Science and Technology of China, Pimco said in a 2005 press release, when he was promoted to managing director. He had joined Newport Beach, California-based Pimco in 1999.