Bank Of Korea announced plan to invest China stock market

Apr.20, 2012 published this wednesday,Korean Central Bank(Bank Of Korea,한국은행)announced its plan to invest China stock market.By Choo Heung-sik,director-general for the Reserve Management Group at the Bank of Korea.

Choo said a license that Bank of Korea received from China to participate the country’s inter-bank bond markets was for more than US$0.3 billion. The Qualified Foreign Institutional Investor (QFII) program was launched in 2003 to allow foreign investors to buy Chinese stocks and bonds.Bank of Korean will have invested the money by the end of July.

China’s currency(Chinese Yuan)strengthened almost 5 percent last year against the us dollar, the best performance among emerging-market currencies.The Chinese yuan has the potential to become a key reserve currency in the long term and thus a lot of countries tend to build a channel for investing there.