One senior financial expert says that those who believe that the body should invest in these reserves don't fully grasp international financial markets and don't understand Wall Street's innovative capabilities. Many top traders have begun developing commodity trading tools that greatly reduce costs when compared to direct purchasing.

Many investments like the Blackstone one, though profitable, have relatively long return cycles. If the FEIC is required to reliably pay interest on government debt each year, it must focus its investments on more guaranteed short-term returns.

Also, since the FEIC's profits will be calculated in dollars, a yuan appreciation of 5 percent in one year would necessitate a yearly return of at least 10 percent. With 200 billion dollars to invest, this will be very difficult to maintain

All of these questions may clear up quite soon-- one member of the preparatory council divulged that the FEIC could be up and running as soon as September.

Original article: [Chinese]