China has accelerated steps to diversify its foreign reserves basket by doubling South Korean debt holdings and buying more mortgage bonds of Fannie Mae and Freddie Mac, the two largest US home funding companies.

The continued rapid growth of China's economy has encouraged many American companies to expand their operations in the country.

China may overtake Japan as the world's second-largest economy this year, but it remains a developing economy despite its fast growth, economists said.

The fifth Pan-Beibu Gulf (PBG) Economic Cooperation Forum will be held on Thursday and Friday in Nanning, capital city of southwest China's Guangxi Zhuang Autonomous Region, as part of the effort to enhance economic cooperation between China and southeast Asian nations.

China's new yuan-dominated lending in July reaches 532.8 billion yuan ($78.6 billion) in July, the People's Bank of China (PBOC), the central bank, said Wednesday.