Jim Sinclair’s Commentary
Factor this into the constant drop in dollar utilization in international trade.
Note the fund is Yuan backed.
China sets up fund to bankroll takeovers
Boasting $3.2 trillion in foreign currency reserves, China has created a new fund aimed at financing takeover bids abroad. The fund also seeks to boost China’s currency in global financial markets.
In its drive to step up overseas investment, the Chinese government has set up a new fund worth 12 billion yuan ($1.9 billion), Shanghai International Group said in a statement Friday.
Shanghai International said it was responsible for running the fund, describing it as China’s "biggest ever fund of its kind."
"The yuan-backed fund will help domestic companies go abroad in seeking more investment opportunities," China’s central bank deputy governor Liu Shiyu was quoted by the official Shanghai Daily newspaper as saying.
The fund is planned to grow to 50 billion yuan, and can be boosted to 150 billion yuan through loans and bond issues.
Apart from financing overseas acquisitions, it is also intended to promote greater use of the Chinese currency yuan – also known as renminbi – in foreign transactions.
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http://www.dw.de/dw/article/0,,15748467,00.html?maca=en-rss-en-bus-2091-rdf
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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