China turning bullish on Europe

Beijing: China, whose $2.45 trillion (€1.91tn) in foreign-exchange reserves are the world’s largest, is turning bullish on Europe and Japan at the expense of the US.

The nation has been buying “quite a lot” of European bonds, said Yu Yongding, a former adviser to the People’s Bank of China who was part of a foreign-policy advisory committee that visited France, Spain and Germany from June 20 to July 2.

Japan’s Ministry of Finance said on August 9 that China bought 1.73tn yen (€15.68bn) more Japanese debt than it sold in the first half of 2010, the fastest pace of purchases in at least five years.