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What to do with so much $$$$$$$$$$$$$$$$$$$$$$$!!!   [Copy link] 中文

Rank: 8Rank: 8

Post time 2012-12-5 16:14:09 |Display all floors
Since 2002, China’s foreign exchange reserves increased by 11 times

From 2002 to 2012 China’s foreign exchange reserves increased by 11 times. Now they have reached $ 3.24 trillion. According to official statistics, ten years ago, this index was $ 286.4 billion

In February 2006, China was first in the world in terms of foreign exchange reserves, ahead of Japan. That same year, the Chinese foreign exchange reserves exceeded $ 1 trillion. In June 2009, they crossed the mark of $ 2 trillion, and in March 2011 – of $ 3 trillion.
It was also reported that the volume of China’s foreign exchange reserves reached $ 3.24 trillion by the end of June 2012. They fell over the same period of the end of March 2012, when the country’s foreign exchange reserves stood at $ 3.305 trillion.

In the first three months of 2012, the volume of China’s foreign exchange reserves rose to $ 123.852 billion as compared to last year. At the end of 2011 the country’s foreign exchange reserves reached 3.181 trillion. However, for the period October-December 2011, the Chinese reserves fell by $ 20.6 billion in annual terms.

Recall that according to data dated the February 2012, China’s foreign exchange reserves in terms of national currency reached 25.524 trillion yuan. During this February, this index rose to 25.115 billion yuan. China’s foreign exchange reserves in February of this year increased by only 18% compared with January. By the end of January 2012 China’s foreign exchange reserves reached 25.499 trillion yuan ($ 4 trillion). During the first month of 2012, the reserves increased by $ 140.922 billion yuan. In January, China’s currency reserves increased thanks to the influx of investment, followed by trade surpluses and a revaluation of the Chinese yuan.
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Post time 2012-12-5 16:29:09 |Display all floors
Unfortunately most of these reserves are bonds not cash.  

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Post time 2012-12-5 16:36:32 |Display all floors
pantarhei Post time: 2012-12-5 16:29
Unfortunately most of these reserves are bonds not cash.

How much in bonds ??

Can't you sell them ??
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Rank: 6Rank: 6

Post time 2012-12-5 17:09:56 |Display all floors
Of course you can sell, but prices change depending on supply and demand right?
"Got a load of bonds, selling $2 Trillion,  cash only, any takers?"
Or selling gradually which will mean a decrease in price and realization of losses for China.
Or keep them and realize your negative returns after inflation.
No magic bullet to get you out of a bad investment.

No wonder they want to keep the holdings a state secret ;)

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Post time 2012-12-5 17:33:07 |Display all floors
correction Post time: 2012-12-5 16:36
How much in bonds ??

Can't you sell them ??

pantarhei is right~
bond is useless~...why China bought so much of bonds from U.S.??
we all know that U.S. is not going to payup if its #1 are threaten...
why China bought so much of Greece? tat country is useless~
China should use those money to do nation building...open up the West region instead on concentrating too much on the East region...its over crowded~

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Post time 2012-12-5 20:27:19 |Display all floors
Well if you look around China these days, you can see that the cash the state does have is being put to good use building high speed rail and other projects while China is investing far more in its military according to statistics. It would be nice to see China try to improve the poverty situation if it has excess funds.

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Post time 2012-12-6 12:55:17 |Display all floors
This post was edited by correction at 2012-12-6 12:56

"It would be nice to see China try to improve the poverty situation if it has excess funds. " quote

Absolutely right !!

Also allocate more funds for education, medi-care, pension funds, green projects, reforestation of arid lands, large-scale irrigation projects, cleaning up pollutions, etc ,etc - certainly good to put $$$$$$$$$$$$$$$ into all these projects.

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