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China Continues Financing in Int'l Capital Market
The Chinese government will continue to raise funds on the international capital market this year, but will make very little change to the amount raised, said Finance Minister Xiang Huaicheng in Beijing on Tuesday.

Xiang, in a press conference at the State Council Information Office, said it is unnecessary for China to increase the raising amount by a large margin since the country already has foreign reserves of about US$227.6 billion.

Although the interest rate is low on the world capital market at present, which makes borrowing more attractive, China's policy banks and commercial banks have taken no steps to increase their borrowing, noted Xiang.

The foreign currencies structure of China's foreign debt and foreign reserve this year, he said, will decide which currency China will select for the issue of bonds for its financing.

The changes in the exchange rates of different currencies on the international market will also be taken into account, the minister added.

By the end of March this year, China's foreign reserve reached US$227.6 billion, up 9.4 percent on last year.

( April 17, 2002)

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