Latest News:  
Beijing   Sunny    2 / -8   City Forecast

People's Daily Online>>Foreign Affairs

Commentary: Japan's purchase of Chinese bonds will benefit both Asian giants

(Xinhua)

09:12, December 22, 2011

BEIJING, Dec. 21 (Xinhua) -- Japan acknowledged Tuesday that it could buy up to 10 billion U.S. dollars worth of Chinese government bonds, a move that can be mutually beneficial for both Asian economic powerhouses.

Japanese Finance Minister Jun Azumi said his country and China would discuss the possibility of purchasing each other's bonds during Prime Minister Yoshiko Noda's visit to Beijing next week.

Tokyo could use 10 billion dollars of its foreign exchange reserves to buy Chinese bonds. It will be the first time for Japan to buy the yuan-denominated bonds.

The historic move will be of strategic importance for Japan, owner of the world's second largest foreign exchange reserves, to diversify its portfolio. It will also be of huge significance for China in promoting the international use of the yuan.

Out of Japan's huge reservoir of foreign exchange reserves, estimated at around 1.3 trillion dollars by the end of November, more than 70 percent is in dollar-denominated assets.

In the current times of uncertainty in international financial markets and debt crisis in the United States and Europe, putting eggs in only one basket is not a good idea for Japan. The country needs to diversify its portfolio.

Buying yuan-denominated bonds can lower Japan's exposure to risk, which is also in line with its traditional favor for lower-risk investments.

【1】 【2】


 
 
 
 
We Recommend
 
 
 

Email|Print|Comments(Editor:陈乐乐)

Leave your comment1 comments

  1. Name

helen at 2011-12-22203.82.80.*
Is Japan unloading Weimar US$ in China to buy Yuan and purchase Chinese bonds!?Many countries are seeking ingenious ways to unload Weimar US$ before the US$ Titanic sails its last journey .... And of course the United States is prohibiting others from recycling Weimar US$ back to the US!
  

Selections for you


  1. Fire-fighting recruits of Shanxi in training

  2. Largest 'comfort station' in Asia crumbling

  3. Red lanterns adorn historic commercial area

  4. Jiaxiang Wu Family Shrines Stone Carving

Most Popular

Opinions

  1. Euro depreciation affects Asian manufacturing
  2. To whom does Pacific Century belong?
  3. US media hypes 'cyber Cold War'
  4. Farmers find city life unfair: report
  5. Soccer bribe trials chance to clean up sport's legacy
  6. Euro zone makes progress in systemic reforms
  7. Weibo regulations a step on the right path
  8. Real names on Weibo points to progress
  9. China's foreign policy not a matter of tough vs. soft
  10. Growth moderation not "bad thing" for China

What's happening in China

Jiaxiang Wu Family Shrines Stone Carving

  1. Amazon attacked for rotten apple
  2. US solar firms against China duties
  3. Taobao remains on US market 'blacklist'
  4. Lenovo unveils Ultrabook sub-brand
  5. Chinese rush overseas for Spring Festival

PD Online Data

  1. Traditional Mooncakes
  2. About Mooncakes
  3. History of Mooncakes
  4. Modern Mooncakes
  5. Legends of Mid-Autumn Festival