China lost $430 Billion on US treasuries?

B

bearice

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

http://blogs.forbes.com/china/2010/08/30/central-bank-chief-rumored-to-have-defected/
 
Quote from bearice:

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

http://blogs.forbes.com/china/2010/08/30/central-bank-chief-rumored-to-have-defected/
More...

You should read the well informed media outlets :

http://ftalphaville.ft.com/blog/2010/08/31/330101/wheres-zhou-xiaochuan/
 
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.
 
Quote from ASusilovic:

You should read the well informed media outlets :

http://ftalphaville.ft.com/blog/2010/08/31/330101/wheres-zhou-xiaochuan/
More...
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."

http://www.zerohedge.com/article/wh...rovides-update-1-month-chinese-repo-surges-50
 
You must log in or register to reply here.
Back
Top