HAIKOU: China should accelerate its paces to diversify investment channels of the colossal foreign reserves, instead of mainly buying US Treasury bonds, said a senior political advisor.

"The return from investing in US Treasury bonds is below 1 percent. The government should rethink its foreign reserve investment portfolio," said Xu Shanda, former vice-director of the State Administration of Taxation.

Also a member of National Committee of Chinese People's Political Consultative Conference, Xu blamed the government for slow action in diversifying foreign reserves investment.