Anyone think this will affect the FTSE?

Discussion in 'Wall St. News' started by blackchip, Jan 1, 2008.

  1. Britain will feel the full power of the new superpower's confidence. This month, for the first time, China's state-controlled banks will begin spending some of its $1.33trn (£670bn) in foreign currency reserves on London's financial markets. Beijing has ruled that Britain should become only the second destination after Hong Kong to be allowed to receive investors' money via so-called "sovereign funds" – the huge state-controlled surpluses built up by cash-rich economies from Qatar to South Korea. Throw in the biggest round of Chinese art exhibitions ever to tour these islands and the oriental bias to 2008 becomes even more pronounced.

    The UK has made it clear that Beijing's investment, which could reach as much as £45bn, is welcome and it follows the recent acquisition by Chinese banks of stakes in such blue chip stocks as Barclays and the US private equity firm Blackstone, at a cost of $3bn. The talk in the finance houses is that the label "Made in China" will soon be replaced by one reading "Owned by China". Takeover speculation has provoked concern in some quarters at the wisdom of selling large assets to organs of a democratically unaccountable state where the financial sector remains underdeveloped.
  2. It's bearish. The Chinese always buy at the exact top.
  3. mokwit


    Also they will make statements to drive the market up or downe.g The HK through train - it's on, it's off, it's on again, no it's off again. Chinese Govt utterly untrustworthy as far as I am concerned. They can keep their money and their manuipulations in their own markets.