Compared with treasury bonds, it is better to explore other channels, said Wang. He suggested the government exchange the treasury debts for shares in infrastructure construction programs in US, support overseas expansion of Chinese enterprises, or use the money to supplement domestic retirement pensions.
Yi said at a seminar on Feb 13 that as the exchange rate of the yuan floats to a balanced level, domestic enterprises and individuals would tend to buy overseas assets. By then, the government should be able find a way to transfer the assets at hand - such as US treasury bonds - to them, which will release the pressure of keeping the value of foreign reserves.