China lost $430 Billion on US treasuries?

Discussion in 'Economics' started by bearice, Aug 31, 2010.

  1. Rumors have circulated in China that People’s Bank of China Gov. Zhou Xiaochuan has left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBOC, including Zhou. Although Ming Pao on Aug. 30 published a report
  2. You should read the well informed media outlets :
  3. How could he have lost $430B? That's nearly half of China's purported stash. Treasuries are at/near all-time highs and there have been no defaults. Had he been shorting them for a long time? Doesn't smell right.
  4. It says that "China may punish Zhou because China lost $430 billion foreign exchange on its Fannie and Freddie bond investment". It doesn't say anything about U.S. Treasury Bonds. The truth is that many Chinese thought China lost all its investment in Fannie and Freddie after they were delisted from NYSE. It is also wrong because China doesn't invest with their stocks."
  5. You'd think that by now people would have learned... "chasing artificially high yield" is a hazardous endeavor.