China's foreign reserves, already the world's largest, have risen past $1.2 trillion, amid surging trade and plans to create a multibillion-dollar government agency to invest some of the stockpile, the Xinhua News Agency said today, citing the central bank. The figure, as of the end of March, represented a 37.4 percent rise over the same period last year,. China's reserves have risen rapidly as a trade- and investment-fueled influx of money forces Beijing to drain billions of dollars from the economy every month through bond sales to hold down pressure for prices to rise. That money is stockpiled in U.S. Treasury notes and other foreign assets. The government announced last month it is creating a multibillion-dollar agency to invest a portion of the reserves in hopes of making more profitable use of the money. -- SPA
