What should China buy with its $3.9 trillion reserves?

[Kaalapani]

There is a saying here that came about due to citizen protections against debt collectors:

"If you owe the bank $500 and stop paying, you are in trouble. If you owe the bank $5,000,000.00 and stop paying, the bank is in trouble."

What that is saying is that there is a tipping point where the creditor has more to lose than the borrower should a default occur.

up untill you default you are at their mercy.

 

[VCheng]

I doubt I'll live to see it.

That's alright, neither will I. USA will live on and on.

 

[cnleio]

$3.948 trillion :
1. to buy advanced techology & skill.
2. to import intelligent brain.
3. to fund military expenditure & new weapons.
4. to invest new energy sources development (controlled nuclear power,get rid of oil).
5. to improve social welfare.
...

 

[Kyle Sun]

1 social welfare
2 intelligent guys
3 R&D
4 military

 

[LeveragedBuyout]

@cnleio and @Kyle Sun, as the article explains, the majority of the forex reserve doesn't belong to the government of China, and thus can only be used if it produces a return (the principal must be available for the companies that generated the forex deposits to withdraw). Therefore, spending on the welfare system and the military is out of the question, but investment in energy projects and acquisition of assets abroad are worthwhile endeavors.

 

[Chinese-Dragon]

Like I've been saying for years, we need to divert more into the CIC arm of our currency reserves. The part responsible for investing in "real" assets across the world, like land/resources/factories/infrastructure.

 

[mycutegirl]

Three trillion on whores and coke......... then just blow the rest.

yes,we will buy all of american women and whores,and dont worry we will leave the rest black ones.don thank me,just enjoy,man.

 

[Kyle Sun]

@cnleio and @Kyle Sun, as the article explains, the majority of the forex reserve doesn't belong to the government of China, and thus can only be used if it produces a return (the principal must be available for the companies that generated the forex deposits to withdraw). Therefore, spending on the welfare system and the military is out of the question, but investment in energy projects and acquisition of assets abroad are worthwhile endeavors.

Energy projects is required option , no doubt.

But abroad assets are not so easy to buy . The other nations do not like to sell what we are interesting, especially high tech field.

 

[LeveragedBuyout]

Like I've been saying for years, we need to divert more into the CIC arm of our currency reserves. The part responsible for investing in "real" assets across the world, like land/resources/factories/infrastructure.

My own proposal: China should complete the Cape to Cairo Railway - Wikipedia, the free encyclopedia or finance the African Union of Railways - Wikipedia, the free encyclopedia This would serve the dual purpose of generating transport fees for China and also facilitating the commodities trade.

 

[Brainsucker]

June 17, 2014, 7:29 p.m. EDT

What should China buy with its $3.9 trillion reserves?
By Ling Huawei

colonize Mars

they should buy Bangladesh, so many Bangladesh member prefer Chinese as their master over their independence

And what about some of the Indonesian who prefer Japan as their master? Should we sell our country to them? Weird analogy.

 

[Hamartia Antidote]

There are not enough people managing the forex reserve. Foreign experience shows that every employee in big, global investment institutions manage on average $500 million to $800 million worth of assets. There are slightly more than 500 people on SAFE’s forex reserve management team. That means every one of them oversees about $8 billion worth of assets.

That's an industry wide average. I have worked for two financial companies that managed a $trillion each and their PM's averaged well over $8 Billion each. For instance $1T/$8B = 125 Portfolio Managers. Trust me...no company is going to have 125 PM's,

 

[LeveragedBuyout]

That's an industry wide average. I have worked for two financial companies that managed a $trillion each and their PM's averaged well over $8 Billion each. For instance $1T/$8B = 125 Portfolio Managers. Trust me...no company is going to have 125 PM's,

With all due respect, how was their performance?

 

[Nike]

colonize Mars



And what about some of the Indonesian who prefer Japan as their master? Should we sell our country to them? Weird analogy.

Who? no Indonesian ever mention Japan as their master or invite them to make a military post in Indonesia, but i regard so many Chinese Indonesian propose to sell their countries to China

 

[Hamartia Antidote]

With all due respect, how was their performance?

Oddly enough I never actually tracked individual performance. The companies as a whole did very well.
I was too busy building the trading systems. After a while all the numbers were just a blur and the PM's names were just text.

 

[kankan326]

There is a saying here that came about due to citizen protections against debt collectors:

"If you owe the bank $500 and stop paying, you are in trouble. If you owe the bank $5,000,000.00 and stop paying, the bank is in trouble."

What that is saying is that there is a tipping point where the creditor has more to lose than the borrower should a default occur.

US is not a bank. China will lose money and US will lose credit. Losing money is not big deal. Losing credit is a vital hit to US. Can you imagine a world in which dollar is not welcomed anymore?