From Asia Times:
The Chinese government is taking action to implement a new policy of diversifying the disposal of the country’s over US$1 trillion foreign exchange reserves which was initiated by the Central Conference on Financial Affairs three weeks ago.
The Ministry of Finance (MOF) is planning to issue yuan-denominated bonds to raise funds that will be used to “buy out” as much as $200 billion from the country’s foreign reserve pool. To take funds out of the foreign exchange reserves the government must pay the equivalent amount in yuan to balance the books. [Full Text]