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SAFE Investment Company (China)

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Definition of 'SAFE Investment Company (China)'

The SAFE Investment Company is the Hong Kong branch of the Chinese sovereign wealth fund. The SAFE Investment Company is a private company, however officials from the Chinese State Administration of Foreign Exchange (SAFE) department serve on its Board of Directors. The fund is set aside primarily as a foreign currency reserve.
Investopedia Says

Investopedia explains 'SAFE Investment Company (China)'

As of March, 2010, China holds approximately USD$2.45 trillion in foreign currency reserves. The SAFE Investment Company is able to invest in a wide variety of instruments including foreign and domestic equities and fixed income securities. The chief objectives of the SAFE Investment Company are to gain investment returns, increase diversification of holdings and to reduce China's exposure to fluctuations in the value of the U.S. dollar.

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