Zhou Xiaochuan Responds To Us Raising The Debt Ceiling: Foreign Reserves Will Continue To Diversify Investment

Zhou Xiaochuan, governor of the people's Bank of China, on the 3 day passed the budget control act of 2011 in the house of representatives of the United States Congress, said that we will pay close attention to the progress made by the United States in raising the debt ceiling. China's foreign exchange reserve management will continue to adhere to the principle of diversified investment, strengthen risk management and minimize the volatility of international financial markets.

Zhou Xiaochuan noted that we noticed that in August 2nd, the house of Representatives adopted the 2011 budget control act and made progress in raising the debt ceiling and formulating a long-term deficit reduction plan.

We welcome this.

We will further study and maintain close attention to the specific contents and phased implementation of the bill.

In recent years, under the framework of the Sino US strategic and economic dialogue, Chinese and American financial officials have maintained effective communication and promoted mutual understanding.

Zhou Xiaochuan said that from a domestic perspective, we will take effective measures.

Zhou Xiaochuan said that US Treasuries are the most important investment and trading products in the global bond market. The volatility and uncertainty of the US Treasury bond market will affect the stability of the international monetary and financial system and drag the global economic recovery.

We hope that the US government and Congress will take effective measures to deal with them from the perspective of their own and global interests.