“Europe has been, and will be one of the major markets for investing China’s exchange reserves,” said SAFE, the State Administration of FX in China. The chatter yesterday in the morning’s FT and paraphrased by the markets at 3pm in the afternoon that China will reassess their euro holdings is “groundless,” SAFE said. With Europe being China’s largest trading partner, China is not going to let Europe twist in the wind during this tough time and will likely keep their reserve allocation to euro assets at about 25%. They went on to say “We believe that with the joint efforts of the international community, the euro zone will be able to overcome its difficulties and maintain the steady and healthy development of European financial markets.” Behind the scenes though I’m sure China cannot be happy having such massive credit and currency exposure to the most highly leveraged regions of the world, the US and Europe.
“Groundless”
May 27, 2010 8:03am by
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/
Posted Under
UncategorizedPrevious Post
Gaming Quarterly Bank ReposNext Post
Food Poisoning . . .
What's been said:
Discussions found on the web: