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Thread: Why does China buy Japan debt?
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[quote=LONELYJOURNEY,400902]The data has shown that China has purchased 541 billion yen ($6.17 billion) in Japanese government bonds in first four months. It has already doubled more than a full-year record compared with 2005. Why does China start to increase its purchase of Japanese government debts? The State Administration of Foreign Exchange explains “As a responsible long-term investor, China maintains a diversification strategy for the investment of its foreign-exchange reserves.” It is speculated that China will probably decrease its holdings of US government bonds. Do you think China will adopt this someday? [/quote]
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