Li added that China could use part of its newly-added reserves to invest in stakes in companies, but he stressed that it would not mean any big change in the overall portfolio.

Recent headline-grabbing deals, including the US$19.5 billion investment by Aluminum Corp of China Ltd (Chalco) in Rio Tinto, are conducted on a "commercial" basis, not a "national strategy" one, he said.

China need not rush to buy oil or commodities as their prices could consolidate further in coming years, Li said.

Gold is currently too expensive and gold prices may plunge as soon as the global economy and investor confidence recover, he added.

Li said that, at the upcoming G20 meeting in London, China may ask countries with major reserve currencies to try to achieve greater stability in their exchange rates and avoid big swings, which he said are harmful to the global economy because they promote disorderly capital flows.

The crisis has told us that a completely free floating exchange rate is not in the interest of anyone," Li said. "It is time to dump market fundamentalism on exchange rates."

China hopes for a global monetary system marked by "transparency, management and accountability," Li said, noting that greater exchange rate stability would create a better environment for trade and investment.

On that note, he emphasized that China intended to keep its yuan basically stable.

"After years of development, we have one lesson to share: exchange rates should be kept stable," he said. "Even if there need to be adjustments, those should be conducted in a controlled and orderly manner."

(China Daily March 9, 2009)