“This is reserve diversification in a broader sense. Instead of accumulating foreign exchange reserves and short-term financial assets, the government wants the nation to accumulate more long-term corporate real assets.”
My Comments: Because of the size of their reserves, selling their dollars and bonds for other assets would take some time. If this isn't a smoke screen we will get hints when prices react.
“Everyone is saying we should go to the western markets to scoop up [underpriced assets],” said Chen Yuan. “I think we should not go to America’s Wall Street, but should look more to places with natural and energy resources.”
My Comments: Yikes!
Full article here...
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