Where the new China investment agency will put all this money? In
blackstone again? I hope not, If someone have a clue please share!
They dis a bad move with the 3 billions: blackstone stocks are falling
like a stone, maybe someone needs financial advise there...
"...Economists said they expect Beijing to try to temper most of the
macroeconomic impact by having the central bank retire shorter
bonds and having the Finance Ministry replace them with longer-term
On 6/27/07, xxxxxxxxxxxxx wrote:
> China's Ministry of Finance is set to issue 1.55 trillion yuan ($200
> billion) of bonds to buy an equal amount of forex reserves from the
> nation's huge $1.2 trillion stockpile, for management by the start-up
> State Investment Co., according to media reports citing Xinhua News.
> If the bonds are issued directly to the People's Bank of China, there
> will be no effect on liquidity and the markets, says an economist at
> HSBC Hong Kong. However, if sold to the market, it will have the
> effect of raising the reserve ratio by 0.5% and further reduce excess
> An additional effect will be to reduce stock prices, in the fisrs case
> what the People's Bank of China wil do with the money? buying china
> stocks or japanese stocks or what? maybe subsidizing rural workers, I
> dont know.