Improving U.S. Data Has China Shift Its Investment Strategy Elsewhere
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While news from the front line indicates things are beginning to pick back up in the States, China may not be sharing the same joyous sentiment...at least as far as their investing is concerned.
The portion of China’s reserve, which is made up of U.S. securities has declined from 65 percent in 2011 and 74 percent in 2006 to just 54 percent last June. Although it is a smaller percentage of China’s total reserves, data highlights the country had purchased $115 billion more in the first six months of 2011, bringing the total to $1.726 trillion.
The WSJ highlights the purchases of U.S. securities totaled 15 percent of the growth in China's reserves, a dramatic decline from the 45 percent in 2010 and 63 percent average over the last five years.
The country has been diversifying its reserve portfolio and has been shifting some of its assets into European bonds. During an EU-China summit in February, China Premier Wen Jiabao stated, "Europe is a main investment destination for China to diversify its foreign-exchange reserves."
The WSJ also notes these figures may be off slightly as accurately identifying country ownership of U.S. securities by third-world countries is extremely difficult.
The portion of China’s reserve, which is made up of U.S. securities has declined from 65 percent in 2011 and 74 percent in 2006 to just 54 percent last June. Although it is a smaller percentage of China’s total reserves, data highlights the country had purchased $115 billion more in the first six months of 2011, bringing the total to $1.726 trillion.
The WSJ highlights the purchases of U.S. securities totaled 15 percent of the growth in China's reserves, a dramatic decline from the 45 percent in 2010 and 63 percent average over the last five years.
The country has been diversifying its reserve portfolio and has been shifting some of its assets into European bonds. During an EU-China summit in February, China Premier Wen Jiabao stated, "Europe is a main investment destination for China to diversify its foreign-exchange reserves."
The WSJ also notes these figures may be off slightly as accurately identifying country ownership of U.S. securities by third-world countries is extremely difficult.
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