Bank of China looking to reduce foreign assets

The Wall Street Journal reports:

Bank of China Ltd. [one of four Chinese government-owned banks] is aiming to reduce the ratio of foreign-currency assets in its portfolio by focusing on new yuan loans, its chairman said.

…Bank of China plans to reduce the weighting of its foreign-currency assets in its portfolio by 10 to 15 percentage points “over the next few years,” from 35% now, Mr. Xiao said in an interview.

…In the year’s first four months, China’s banks extended 5.17 trillion yuan of new loans, more than in all of 2008.

…Mr. Xiao said Bank of China isn’t planning any overseas mergers or acquisitions at present and is instead focusing on organic growth.

And one more foreign bank willing to buy Federal Reserve notes slowly backs away…

Read the entire article here.

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