Beijing, March 9 (Xinhua) China is preparing to set up a foreign exchange investment company directly under the cabinet, to make better use of its massive foreign exchange reserve, Finance Minister Jin Renqing said Friday.

"We will draw from international successful experience, such as the Temasek Holdings of Singapore, in the management of foreign exchange investment," the minister said on the sidelines of parliament's annual session.

The new company will be under the direct leadership of the State Council, or the cabinet, instead of the finance ministry as it was reportedly to be, Jin said.

China's foreign exchange reserve reached $1.066 trillion at the end of last year. The State Council has decided to separate the management of foreign exchange reserve and foreign exchange investment.