It will be the first time the Reserve Bank of Australia (RBA) will invest in sovereign bonds of an Asian country other than Japan.
The RBA has foreign currency reserves of A$38.2bn ($39.2bn; £25.7bn).
Earlier this month, the Australian dollar became the third currency to trade directly with the Chinese yuan.
“This decision to invest in China is an important one,” Philip Lowe, deputy governor of the RBA said in a speech to the Australian Chamber of Commerce in Shanghai.
“It reflects the broader economic relationship between China and Australia and our increasing financial ties.
“It provides greater diversification of our investments and will help with our understanding of the Chinese financial markets,” he added.
via BBC
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.