South Korea Plans to Buy China Shares to Diversify Reserves
This article is for subscribers only.
South Korea’s central bank is considering buying several hundred million dollars worth of Chinese equities and a greater amount of the nation’s bonds to diversify its foreign-exchange reserves.
“The Chinese yuan has the potential to become a key reserve currency in the long term and thus we are building a channel to invest there,” Choo Heung Sik, 53, director general at the Bank of Korea’s Reserve Management Group, said in an interview in his office yesterday in Seoul. He said the bank may invest in Chinese shares in the second half of this year, after purchases of debt in the first six months.