Overseas direct investment may soar
0 
Forex reserves
"Overseas direct investment will accelerate this year," said Zhang Xiaoji, director of the Foreign Economic Relations Department of the Development Research Center under the State Council.
"The government's macro-economic policies and the enterprises' strong willingness are the main triggers for the growth," he said.
By the end of 2009, China had foreign exchange reserves of $2.4 trillion, accounting for 30.7 percent of the world total. Analysts are of the opinion that it is risky for China to hold such huge levels of forex while global economic prospects remain uncertain.
"A good way to reduce the risk would be if some of the forex reserves are used to help Chinese companies go overseas," said Zhang.
Overseas investment could also help Chinese companies better utilize their disposable funds, especially when the government is tightening policies in sectors such as real estate to curb inflation.
Yet another attraction for domestic firms is the relatively low prices needed to buy overseas assets.
