A new agency created to help manage part of China's US$1.07 trillion in foreign reserves may be formally established by the first half of this year, the Economic Observer reported, citing a person it didn't name.

Central Huijin Investment Co, the central government's investment arm, will be folded into the new entity after it is formed, the report said. The new company will assume the responsibilities of Huijin, and its management and directors will join the new body. The company may invest in equities, corporate debt and financial derivative products, as well as make direct investments in international firms, said the report.

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