China may take some of the $3.4 trillion in foreign exchange reserves it’s built up as a result of its massive trade surplus and invest it in U.S. real estate instead of Treasurys, Bloomberg reports. China Investment Corp., a sovereign wealth fund established to boost returns on part of China’s foreign exchange reserves, may acquire properties, invest in real estate funds, or buy stakes in property companies, two anonymous sources told Bloomberg. Source: scmp.com.

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