BEIJING, July 17 (Xinhua) -- China's Central Bank Governor Zhou Xiaochuan said Friday that the country's foreign exchange reserve should not be seen as "an investment fund", so it should not be looked on as a profit source.

    "If the foreign exchange reserve can produce reasonable returns, it is good enough," Zhou said at Peking University when delivering a speech.

    China had reserves of 2.13 trillion U.S. dollars in June, the largest in the world.

    He said the increase in the reserve could bring the country many advantages, adding that agencies using foreign exchange reserve to invest should endeavor to guarantee security and value appreciation, without specifying the names of the agencies.

    In 2007, China set up the China Investment Corporation, with a registered capital of 200 billion U.S. dollars. The Beijing-based company is investing in equities, fixed income and alternative assets worldwide.

Yi Gang appointed as China's forex chief

    BEIJING, July 17 (Xinhua) -- Yi Gang, a former deputy governor of the People's Bank of China, or the central bank, was appointed as the new head of the State Administration of Foreign Exchanges(SAFE), according to a statement on the SAFE's website Friday.

    Hu Xiaolian, SAFE's former head became a deputy governor of the central bank, said the bank's website. Full story

China simplifies rules on forex use to boost outbound investment

    BEIJING, July 15 (Xinhua) -- China's foreign exchange regulator said Wednesday it would loosen its controls on overseas investment procedures and foreign exchange management of domestic companies to boost outbound investment.

    In a statement on its website, the State Administration of Foreign Exchange said a regulation, which will take effect on Aug.1, would simplify the examination and approval procedures for domestic companies with overseas investment plans. Full story

China's forex reserves rise to record $2.13 trillion

    BEIJING, July 15 (Xinhua) -- China's foreign exchange reserves hit a new high of 2.13 trillion U.S. dollars at the end of June, adding to the belief that the world's third largest economy is on track for recovery, but also raising concerns about the influx of speculative capital betting on fast-ballooning asset prices.

    China added new reserves of 185.6 billion U.S. dollars in the first half of the year, but that is about 95 billion U.S. dollars down on the same period a year ago, the People's Bank of China said on its website Wednesday. Full story