H shares can be a good option for forex reserve

As the world strives to survive the financial tsunami, how China uses its large amount of foreign reserves has been a focus of attention.

By September, China had owned $585 billion in US government bonds, becoming the largest creditor of the world's largest economy, according to the latest statistics from the Ministry of Finance. It bought new US national debts every month during this year's first three quarters.

In September alone, China bought an additional $43.6 billion of US treasury bonds, twice as much as that it held in the previous month.