This is something we reported on just a few weeks ago (see here). This would seem to be a much more important announcement than the employment report. Will the Chinese start buying US stocks? If they do, the impact on equities could be as important as the impact they've had on the US bond market over the last few years. Expect to start hearing soon about how the Chinese are buying up America.
China is creating an investment company to make more profitable use of its $1 trillion in foreign currency reserves, the finance minister said Friday, in a move that could change the flow of billions of dollars in global markets.
Finance Minister Jin Renqing gave no details of how the Cabinet-level company might invest the reserves, which are believed to be mostly in safe but low-yielding U.S. Treasury bonds. He also did not say what portion of the reserves might be channeled through the company or when it would start to operate.
Friday, March 09, 2007
Posted by Boomer at 9:18 AM