Foreign Exchange Reserves Have Exceeded The Reasonable Level Of &Nbsp; Diversification Should Be Diversified.

Zhou Xiaochuan, governor of the central bank, admitted at the Tsinghua University's financial high end Forum on the evening of 18, that foreign exchange reserves have exceeded the reasonable level of China's needs. Excessive foreign exchange accumulation has led to excessive market liquidity and increased pressure on central bank hedging.

Diversify the risks of foreign exchange reserves

By the end of 3, China's foreign exchange reserves had exceeded US $3 trillion, which is less than a year's first time to exceed US $2 trillion from foreign exchange reserves.

Zhou Xiaochuan admitted yesterday that foreign exchange reserves have exceeded the reasonable level of China's needs. Excessive foreign exchange accumulation has led to excessive liquidity in the market and increased pressure on central bank hedging.

The State Council has also proposed to reduce excessive accumulation of foreign exchange reserves, which must be well managed for the accumulated part, one of which is diversification.

At present, China is facing the risk of large cross border capital inflow. For this reason, Zhou Xiaochuan responded that first of all, the international speculative capital was not successful by Bibi. Moreover, they had great influence on the open economy of small countries, but they had little influence on the economy of such big countries, and China had capital controls.

Municipal debt sustained-release financing platform risk

Earlier, the international rating agencies took into account the risks of local financing platforms and so on, and stabilized China's long-term home currency issuers' default rating outlook from negative to negative.

When Zhou Xiaochuan talked about the local financing platform yesterday, he said that in the stimulus package launched in 2008, local governments borrowed heavily from local government financing platforms to raise funds.

During the process, most banks conducted compliance checks, but a small number of banks did not perform due diligence. Therefore, "12th Five-Year" raised a higher demand for financing platform risks.

Zhou Xiaochuan believes that the risk of financing platform is actually some kind of disguised municipal debt.

Instead of doing so, it is better to allow local governments to issue municipal bonds, pricing bonds and evaluating risks through financial markets, forming different prices of different urban bonds, which will form different binding and rating.

Zhou Xiaochuan said that if the municipal debt and property tax match, we can effectively solve the problem of cost constraint in the construction of urbanization, but also prevent the risks arising in the process of urbanization.