China gives US $38 bn investment quota, deepens ties

Reuters reports that China will give the United States a RMB 250 bn ($38 bn) investment quota for the first time to buy Chinese stocks, bonds and other assets, officials said on Tuesday, deepening financial ties and interdependence between the world’s two largest economies. China has given such quota allocations to several countries, including the UK, France and Singapore, but this would be the biggest given to a single jurisdiction after Hong Kong. Chinese officials also repeatedly pledged in two days of talks with U.S. counterparts that they saw no need for sustained weakening of the yuan currency, which many investors fear could shock the already sluggish U.S. and global economies and roil financial markets as happened in January.