China's forex reserves top $2t

China’s foreign exchange reserves have exceeded US$2 trillion for the first time, demonstrating Beijing’s difficulty in finding places to invest, Bloomberg reported. The reserves reached US$2.13 trillion in the second quarter, an increase of US$178 billion, compared with a US$7.7 billion gain in the first quarter. M2, the broadest measure of money supply, grew by 28.5% in June, up from 25.7% growth in May according to the People’s Bank of China (PBoC). The PBoC has ruled out a change in management of the reserves even as Premier Wen Jiabao expressed concerns that US$763.5 billion in US treasuries will fall in value as Washington sells large amounts of debt to fund its stimulus package. Analysts said that Beijing does not have much of a choice when it comes to diversification due to the size of its reserves.