Cocktail of assets may be the right cure

Recently a debate has sparked domestically about whether it is wise for China, which has a massive amount of foreign exchange reserves, to continue purchasing United States Treasury bonds.

China's methods of preserving and increasing the value of its foreign exchange reserves not only influences the security of State reserve assets, but also bears on the stability of the international exchange market.

But with the recent debt crisis in Europe, investors globally are waiting to hear from China on the foreign exchange reserves issue.