China's central bank plans to establish a new investment vehicle to manage $300 billion in foreign reserves, according to a source with knowledge of the matter, Reuters reported last week.

The vehicle is aimed at improving returns on China's foreign exchange reserves. It will operate two funds, targeting investments in the United States and Europe, the source said.

Chinese authorities have not yet confirmed the news.

China's foreign exchange reserves totaled $3.2 trillion at the end of September.

China's business press carried the story above on Monday.