Photo: Lou Jiwei: China prepared to invest in industrial and other real assets.“We May Be Poor But Not Stupid”, China Is Not Interested In EU Government Bonds -- Merco Press
The head of China’s 410 billion dollars sovereign wealth fund CIC brushed aside a call by German Chancellor Angela Merkel to buy European government debt, saying such investments were “difficult” for long-term investors.
In comments ahead of a China-EU summit starting on Tuesday, Lou Jiwei, chairman of China Investment Corp (CIC), said any fresh injection of funds into Europe would be in industrial and other real assets, not government bonds.
His comments struck a sharper tone than a commentary in the Communist Party mouthpiece, the People's Daily, which sought to reassure the European Union that China had no intention to “buy up Europe”.
Read more ....
My Comment: International bond holders are being asked to take a 70% cut in Greece's debt .... talk about setting up a bad precedent if you want to sell government bonds. The Chinese are seeing what is happening, and they are not stupid. They do not have confidence in Europe's ability to control its spending, and they do not want to be in a situation where what is happening in Greece today will happen to them in Europe tomorrow.
No comments:
Post a Comment