Money

No politics in China's sell-off of Japanese debt: paper

(Agencies)
Updated: 2010-10-11 16:08
Large Medium Small

China's sell-off of Japanese debt in August reflects Beijing's determination to better manage its foreign exchange reserves and had nothing to do with politics, Shanghai Securities News reported on Oct 11.

Chinese investors sold a record 2.0 trillion yen ($24.4 billion) in short-term Japanese bills in August, nearly reversing its hefty accumulation in the previous seven months.

Related readings:
No politics in China's sell-off of Japanese debt: paper Chinese, Japaese defense ministers talk in Hanoi
No politics in China's sell-off of Japanese debt: paper Leaders talk to put Sino-Japan ties back on track
No politics in China's sell-off of Japanese debt: paper Japan expecting to improve China ties: spokesman
No politics in China's sell-off of Japanese debt: paper Premier Wen meets with Japanese PM

Observers were surprised by the apparent about-turn, having previously viewed China's purchases of Japanese debt as an indication of its greater diversification of foreign exchange reserves.

There was nothing unusual about the flows in either direction, according to the newspaper.

"In our investment activities, we always pay close attention to and analyze all kinds of fluctuations," the newspaper quoted an unnamed official from the State Administration of Foreign Exchange as saying.

"We continuously conduct operations to dynamically adjust and perfect (our investments). A political explanation is not necessary," the official said.