China to keep buying U.S. Treasuries -c.banker

Published: 22 Mar 2009 23:03:37 PST

BEIJING, March 23 - China will continue to buy U.S. Treasuries, viewing the credit risk as low overall, Hu Xiaolian, a vice governor of the People's Bank of China, said on Monday.

Hu, who is also head of the State Administration of Foreign Exchange, told a news conference that China would pay close attention to changes in the value of its Treasury holdings.

However, China decides the composition of its roughly $2 trillion in foreign exchange reserves based on long-term, strategic factors, and will not be swayed by short-term volatility in currency markets, she said.