Crisis Focus: Ditching US Securities?
28.02.10
Japan has surpassed China as the largest holder of curious U.S. Treasury securities at the end of 2009, after China sold 34.2 million dollars in U.S. securities last December. China has even surpassed Japan as the first holder in September 2008. Since then, China has increased and has reduced its stake from time permanent. The latter amount, however, accounted for 4 percent of all assets and Chinese was the largest reduction take months to years. Some analysts have attributed the reduction to the intensification of bilateral trade disputes and political threats from the United States.Three scientists recently shared their views with Xinhua Information Agency. Edited excerpts follow:
Tan Yaling (president of China Exotic Exchange Investment Research Institute): settling in China has been taken after careful consideration of market risk and part of the formula the government to diversify the investment portfolio of its huge foreign exchange reserves Foreign.
This reduction does not mean that China renounce invest in dollar assets. On one side is accessible, we still hold a large amount of assets denominated in dollars. Therefore, to divide U.S.Securities Exchequer fully exert a huge negative hump on our dollar assets in hand, leading to extinction of substantial value. On the other hand, no money can not compete with the dollar size of the world in terms of stability, security and profitability.
Source: Beijing Review