US treasury bonds ’still the best option’ for China
Chinese economists say US Treasury bonds are still the best way for China to invest its US$1.9 trillion foreign exchange reserves. This week China replaced Japan as the top holder of US Treasury debt, with holdings amounting to US$585 billion. Dong Yuping, senior economist at the Institute of Finance and Banking, said that, despite the economic crisis, such investments still carry the smallest amount of risk, and China may not have many other options. Chen Gong, chief economist and chairman of Anbound Group, a Beijing-based consulting firm, noted that the potential returns on these bonds will rise now other countries are increasingly seeking refuge in US government debt.
Source: China Daily
Possibly Related Posts:
- China warns US against trade sanctions
- Chinese official warns of risk if RMB rises
- World Bank raises China 2010 growth forecast to 9.5%
- IMF Strauss-Kahn: RMB significantly undervalued
- Taiwan formally OKs China financial investment rules
