Site icon China Economic Review

CBRC: Beijing to keep buying US Treasuries

Luo Ping, a director-general at the China Banking Regulatory Commission (CBRC), said Beijing will continue to buy US Treasury bonds even though it knows the dollar will depreciate because such investments remain its “only option” in a perilous world, the Financial Times reported. Speaking at the Global Association of Risk Management’s 10th annual risk management convention in New York, Luo said "We hate you guys. Once you start issuing US$1 trillion to US$2 trillion. . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.” Luo said Chinese officials would encourage its banks to finance domestic mergers and acquisitions rather than provide rescue financing to distressed financial companies in other countries: “There will be no bottom-fishing of financial institutions, particularly in the US, because there is a lot of uncertainty about the quality of the books,” he said.

Exit mobile version