China's Forex Reserves Rise to $3.088 Trillion

[Mista]

That's why I said one of ..., it's the government new strategy, can google for details if you are interested.

I have some figures here:

2017 Total official assets (Official assets are the sum of foreign exchange reserves, net forward reserve positions, and foreign assets of sovereign wealth funds minus public and publicly guaranteed external debt):

https://piie.com/blogs/trade-investment-policy-watch/currency-manipulation-update-2015-17

2018 Forex reserves:
https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves

China
Forex reserves: $3053B
Official external net assets: $3250B
Percentage of forex reserves in official assets: 93.9%

Japan
Forex reserves: $1209B
Official external net assets: $1433B
Percentage of forex reserves in official assets: 84.4%

Hong Kong
Forex reserves: $423B
Official external net assets: $423B
Percentage of forex reserves in official assets: 100%

Singapore
Forex reserves: $294B
Official external net assets: $800B
Percentage of forex reserves in official assets: 36.8%

Norway
Forex reserves: $65B
Official external net assets: $1097B
Percentage of forex reserves in official assets: 5.9%

China, Japan and HK are putting most of their foreign assets in forex reserves to protect against exchange rate volatility. Greater liquidity but lesser returns.

Singapore and Norway are putting most of their foreign assets in sovereign wealth funds for long-term investments. Greater returns but lesser liquidity.

In Norway, the handlingsregelen rule allows up to 3% of the reserves to be allocated to the yearly budget. It contributed around NOK231B (USD26.7B) to the budget in 2017.

https://www.statsbudsjettet.no/Upload/Statsbudsjett_2018/dokumenter/pdf/budget_2018.pdf

In Singapore, the constitution allows up to half of the long-term net investments returns to be allocated to the yearly budget. It contributed around SGD14.6B (USD10.8B) to our budget in 2017, more than our income tax, corporate tax or GST. It's the largest source of government revenue currently.

https://dollarsandsense.sg/budget-2018-why-calls-to-use-more-of-singapores-nirc-make-no-sense/

 

[Jlaw]

peasant boy beijing walker answer post 16

 

[TaiShang]

I guess gold is a safe heaven in coming years, my family already started offloading mutual funds and is buying gold.

China is said to be getting around 5-600 billion USD annually in interest payments from its overseas investments.

Mainland China is said to be hoarding gold, but, its holdings are very secretive (like its nuclear holdings), so, it is all wild guessing.

Oftentimes, such news as below comes up.

***

China Snaps Up More Gold as US Trade War Pushes Country Away From Dollar

20:01 12.02.2019(updated 20:07 12.02.2019)

China resumed its gold-buying spree late last year, after Russia slipped past it and entered the top five countries in total gold reserves.

The People's Bank of China added over 20 tonnes of gold to its reserves between December and January, according to fresh figures released by the bank. The buy-up saw China's stockpile, now sitting at 1,864 tonnes, grow for the first time since October 2016.

https://sputniknews.com/business/201902121072355969-china-gold-reserves-inch-up/

 

[GeraltofRivia]

Nah. There are massive capital outflow out of China over the past few years and China had to tighten capital controls and spend their foreign reserves to defend the currency.

https://www.ft.com/content/43f2c4e6-e260-11e8-a6e5-792428919cee

Nov 2018:

Quite a chunk of the money was flown out to buy properties in western countries, that’s why house price in Australia has gone up so much over the last few years. Same thing happened in Canada, New Zealand, etc.

China is said to be getting around 5-600 billion USD annually in interest payments from its overseas investments.

Mainland China is said to be hoarding gold, but, its holdings are very secretive (like its nuclear holdings), so, it is all wild guessing.

Oftentimes, such news as below comes up.

***

China Snaps Up More Gold as US Trade War Pushes Country Away From Dollar

20:01 12.02.2019(updated 20:07 12.02.2019)

China resumed its gold-buying spree late last year, after Russia slipped past it and entered the top five countries in total gold reserves.

The People's Bank of China added over 20 tonnes of gold to its reserves between December and January, according to fresh figures released by the bank. The buy-up saw China's stockpile, now sitting at 1,864 tonnes, grow for the first time since October 2016.

https://sputniknews.com/business/201902121072355969-china-gold-reserves-inch-up/

Going for gold, the ultimate value holder!

 

[Mista]

Quite a chunk of the money was flown out to buy properties in western countries, that’s why house price in Australia has gone up so much over the last few years. Same thing happened in Canada, New Zealand, etc.

Yep. Not just Western countries, but increasingly countries in Southeast Asia and South Asia as well.

https://scmp.com/economy/china-econ...lass-take-big-risks-move-money-and-themselves

 

[GeraltofRivia]

Yep. Not just Western countries, but increasingly countries in Southeast Asia and South Asia as well.

https://scmp.com/economy/china-econ...lass-take-big-risks-move-money-and-themselves

As far as I can see, Chinese have 2 main obsessions: growing vegetables and buying houses. Cannot help...

 

[oprih]

Nice, that's larger than the economy of india and vietnam combined.