BEIJING, July 6 (Reuters) - China expressed confidence on Tuesday that it could achieve stable, long-term returns on its $2.45 trillion stockpile of official currency reserves.
The State Administration of Foreign Exchange said it was confident in Europe's ability to overcome its current financial difficulties but added that it was keeping a close eye on its investments in the Fannie Mae and Freddie Mac, the two U.S. government-sponsored housing finance agencies.
SAFE said it had not invested in the shares of Fannie and Freddie -- a source of concern for Chinese Internet commentators.
SAFE said China had not taken big losses on its portfolio during the global financial crisis. Book gains from rising asset prices outweighed valuation losses caused by the appreciating yuan, the agency said on its website, www. safe.gov.cn. (Reporting by Zhou Xin and Simon Rabinovitch; Writing by Alan Wheatley; Editing by Jonathan Hopfner)