(Beijing) – China's central bank is considering the establishment of a new fund to conduct investment with the country's swelling foreign exchange reserves, Caixin learned from sources close to the central bank.

The new funds may target investment in specific areas including energy and precious metals, in an aim to diversify China's foreign exchange reserve investments, which currently consist mainly of U.S. Treasury bonds. As of the end of February, China holds US$ 1.2 trillion worth U.S. Treasury bonds, the largest in the world.

Sources close to the central bank also disclosed that related authorities are mulling plans to create a foreign-exchange stabilization fund to intervene in foreign exchange markets.