China\'s external financial assets rise 19%

China''s external financial assets expanded 19% from a year earlier to 4.126 trillion US dollars by the end of 2010, boosted by increased foreign exchange reserves and overseas investment, the State Administration of Foreign Exchange (SAFE) said Monday. According to 2010 year-end figures on China''s international investment position (IIP) released by the SAFE, the country''s external liabilities rose 20% year-on-year to 2.3354 trillion dollars, while net external financial assets increased 19% to 1.7907 trillion dollars in 2010. About 71% of China''s external financial assets were its 2.9142 trillion dollars of foreign exchange reserves, according to the SAFE. China''s 310.8 billion dollars of direct investment overseas, 257.1billion dollars of securities portfolio investment and 643.9 billion dollars of other unspecified investments made up the rest. In terms of China''s foreign financial liabilities, direct investment by other countries or regions in China totaled 1.4764 trillion dollars, securities portfolio investment reached 221.6 billion dollars and other unspecified investment stood at 637.3 billion dollars, China''s news agency (Xinhua) reported. China''s foreign exchange regulator, the SAFE, also revised China''s IIP for 2009 in its statement on its website. According to the statement, China increased its holding of gold to 48.1 billion dollars in 2010, up from 37.1 billion dollars in 2009. Representing the difference between a country''s domestically owned foreign assets and foreign owned domestic assets, IIP reflects the financial assets and liabilities of one country or region compared to other countries or regions.