Returns on forex reserves expected to remain stable

The prospective returns on China's vast amount of foreign exchange reserves are likely to remain stable, and the regulator is optimizing investment strategies this year to increase asset values and reduce the adverse impacts of expected monetary easing in major economies, according to economists.

They also said that it could be a trend for China to continue to increase its gold holdings for the purpose of reserve portfolio adjustment aimed at value preservation and reduction of foreign exchange risks.

The State Administration of Foreign Exchange, China's forex regulator, disclosed for the first time on Sunday that the country had achieved a 10-year average return rate of 3.68 percent on its foreign exchange reserve investments from 2005 to 2014, according to the administration's 2018 annual report published on its website.