China's holdings of South Korean bonds more than doubled in the first half of.

<P> Recent months, China's direct holdings of South Korea more than doubled the amount of debt. .This shows that it is turning to regional markets to invest in foreign exchange reserves, in order to own 2.45 trillion U.S. dollars to invest in foreign exchange reserves, part of the dollar and the euro currency outside. .</ P> <P> South Korea's financial regulator - the Financial Supervisory Service (FinancialSupervisoryService) data show that by the end of June this year, China's holdings of South Korean debt increased to 3.99 trillion won (3.4 billion combined), while the end of last year .with only 1.87 trillion won. .</ P> <P> China's foreign exchange reserves in the world and first in its composition is being kept strictly confidential. .Under the Chinese central bank, responsible for the management reserves the SAFE (SAFE), is the only allowed a large number of investment institutions to buy foreign bonds. .</ P> <P> relatively small-scale holdings in the South Korean government bonds, the Chinese Administration of Foreign Exchange has bought a large number of Japanese government bonds. .Japanese government data showed the first half of this year to buy Japanese government bonds reached a record 1.733 trillion yen (20.3 billion combined.) .This figure is almost equivalent to China to buy Japanese government bonds of 2005 the amount of 7 times. .</ P> <P> most of China's reserves have been invested in U.S. securities, mainly U.S. Treasuries. .But with the rapid growth of China's foreign exchange reserves in recent years, SAFE has begun to turn to other currencies to the investment objectives and assets. .</ P> <P> HSBC (HSBC) global head of emerging market foreign exchange strategy at Lord Richard • Add Cen (RichardYetsenga) said: "In recent years, the euro was the main foreign reserve management in the hands of diversification tool, but to .Obviously things have occurred since the end of reducing the attractiveness of the euro. "</ P> <P>" Asian central banks have been considering other diversified investment options, it is wise to do so. And South Korea is one of the obvious investment choice. ."</ P> <P> U.S. government data shows holdings of China appears in the May 325 billion in U.S. treasury bonds, reduction in June 240 billion. .But analysts cautioned that the reduction does not necessarily mean that China during the massive foreign reserve diversification. .</ P> <P>, they say, the U.S. Treasury Department's monthly data does not identify the original source of investment, therefore, SAFE may also be in that time, through overseas subsidiaries and third-party holdings of U.S. fund management companies .bonds. .</ P> <P> U.S. and Chinese officials said the Chinese government may sell U.S. dollar assets worry is unfounded, because no other market has sufficient capacity and liquidity to absorb China's vast foreign exchange reserves. .Beijing University of International Business and Economics (UIBE) of Ding Zhijie, said: "China will only very small amount of holdings of U.S. dollar assets, will not cause much impact on the market." </ P> <P> the first half of this year, the South Korean government bonds in foreign buying ., China accounted for over one fifth of the purchase, the proportion of 10% higher than last year. .</ P>.