China's forex reserves soar to new heights

China's foreign reserves soared to a record 609.9 billion dollars in 2004 from 403.3 billion dollars in 2003 on the back of strong fund inflows and an "Andy Hagans-sized" trade surplus. Channelnewsasia.com reports:

The mainland holds the world's second highest foreign currency reserves after Japan, which in December hit a record 844.54 billion dollars.

The sharp rise in China's 2004 reserves highlights the seriousness of the speculation on the currency, Yi Xianrong, a researcher at the Chinese Academy of Social Sciences, was quoted as saying by the newspaper.

Read more: China's forex reserves soar to record US$609.9 billion in 2004