China flags FX reserve risk from Fannie, Freddie http://uk.reuters.com/article/governmentFilingsNews/idUKPEK20207720080716 -------------------------------- BEIJING, July 16 (Reuters) - The troubles of Fannie Mae and Freddie Mac pose new risks to China's $1.8 trillion foreign exchange stockpile, adding urgency to Beijing's goal of diversifying its reserves, a researcher at a top Chinese think tank said. The emergency rescue of the top U.S. mortgage finance companies showed that, along with a falling dollar, bonds and treasuries could also shed value, eating into China's forex reserves, Zhang Ming, a Chinese Academy of Social Sciences researcher, said in a report obtained by Reuters. -------------------------------------------
Lol, they only just realised? I guess the dollar falling 45% wasn't a good enough signal that the US might not be a great place to invest.