Because of the possible huge loss in its investment in the US-based Hua Mu Bank, the State Administration of Foreign Exchange ( SAFE for short), which holds more than one trillion US dollars of foreign exchange reserves, will probably reduce its equity investment overseas next year.
According to Reuters, SAFE made its first investment in a foreign private equity fund early in 2008, and it agreed to invest no more than 2.5 billion US dollars in Texas Pacific Group (TPG for short), a giant private equity investor in the US.