BEIJING - US Treasury securities will remain an important market for the managers of China's official currency reserves, but gold will not become a major component of the central bank's portfolio. In a series of questions and answers posted on its website, the State Administration of Foreign Exchange was asked whether China would use its $2.45 trillion stockpile of official currency reserves, the world's largest, as a "nuclear weapon". SAFE replied that any such worries on that score were completely unnecessary. China would remain a long-term, responsible financial investor, the agency said on its website. China is investing its foreign- exchange reserves as a financial investor rather than seeking control of the entities it is investing in,SAFE also said. China will seek to defuse concerns about or opposition by other countries' where it is investing its reserves, the agency said in response to questions about whether China would use its record reserves as an "atomic weapon."

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