China bank regulator clarifies, says U.S. bonds are not only option

CBRC Official Says U.S. Bonds Not Only Option, China News Says

By Judy Chen
Bloomberg News
Friday, February 13, 2009

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aroXowtOihWk

SHANGHAI -- China Banking Regulatory Commission official Luo Ping said holding U.S. government bonds is not the only option for investing reserves, clarifying comments made a day earlier, the China News Service reported.

U.S. debt is one option in addition to gold and other government debt, Luo, head of the training center at the banking regulator, was quoted as saying in an interview with the news agency late yesterday. If the U.S. government issues too much debt in its efforts to revive the economy, all Treasury holders will suffer losses, he added, the Chinese-language report said.

Dow Jones on Feb. 11 cited Luo as saying that there are few real alternatives to holding U.S. Treasury securities. CBRC said late yesterday in a statement that Luo's comments don’t represent the view of the regulator.

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