China to select riskier investments

The central bank said China's stash of $1.07 trillion in foreign currency and securities will likely be invested in new ways rather than only in US and European government bonds, the Wall Street Journal reported. China, one of the biggest investors in the world, has announced that its old system of investment is out of date and it will follow the lead of countries like Japan, Singapore, and South Korea. New steps would mean fewer steady purchases of US Treasury bonds and more investments that are riskier but have better long-term returns, like corporate bonds, stocks or even real estate and commodities. Analysts suggest China could spare $200 billion – $300 billion from its reserves for more aggressive investments in the coming years.