China will merge Central Huijin Investment Co, the government's investment arm, into a new agency to better manage mounting foreign reserves, a deputy governor of the central bank said.

Related readings:  Central Huijin to merge into new forex investment agency  Central Huijin to take over Everbright Group  Treasury bond to be issued to buy forex reserve

The new State Investment Co will assume the responsibilities of Central Huijin, Wu Xiaoling, deputy governor of the People's Bank of China, said at a forum in Shanghai recently.

Central Huijin holds controlling stakes on behalf of the government in the nation's three-biggest State-owned banks. Central Huijin played a key role in the restructuring of State-owned banks.

Central Huijin completed bailouts to lenders such as Bank of China, China Construction Bank and Industrial and Commercial Bank of China. The three received a combined $60 billion through Huijin from the central bank.

(For more biz stories, please visit Industry Updates)