Business & Finance

South Korea central bank plans "gradual" investment in China

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The Bank of Korea has received a licence to invest in Chinese stocks and bonds from China's markets regulator and a separate approval from the country's central bank to participate in inter-bank bond transactions, it said in a statement.

But the approvals will not result in a drastic change in the make-up of South Korea's foreign reserves totalling $306.4 billion, because the Bank of Korea will consider investment on a medium- to long-term point of view, it said.

The Bank of Korea does not provide a full list of currencies it invests in but has said it has more than 60 percent of the investment in US dollar.

Copyright Reuters, 2012