China's central bank plans to create a new vehicle to manage investment funds worth a total of $300 billion to improve returns on the world's largest stockpile of foreign exchange reserves, a source with knowledge of the matter told Reuters.
The vehicle, which was planned well before the start of Europe's debt crisis and is aimed at improving returns on China's foreign exchange reserves, would operate two funds, one targeting investments in the United States and the other focused on Europe, said the source, who asked not to be named because of the sensitivity of the matter.
The vehicle's goal is to make more aggressive overseas investments for higher returns, said the source along with a second, independent source, who also declined to be named. Details of the venture are still under discussion, but key personnel for managing the venture have been agreed upon, the sources said.
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