Wednesday 22 Aug 2018 | 00:21 | SYDNEY
Wednesday 22 Aug 2018 | 00:21 | SYDNEY

Poor(er) China


Mark Thirlwell

28 May 2010 08:56

You almost have to feel sorry for those in charge of investing China's mammoth stock of foreign exchange reserves. 

Last year, China was worrying about the safety of its US investments and getting all worked up about the dearth of other places to park its money (remember that telling 'we hate you guys' moment?). So what was a Chinese official investor in search of diversification to do? Well, there was always the euro area, right? Oops. Now Beijing is getting twitchy about its sizeable exposure to all of those dodgy European governments. Time for another portfolio reallocation.

Related: take a look at Martin Wolf's update of the fable of the ant and the grasshopper.

Photo by Flickr user daninho ibk, used under a Creative Commons license.