Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. China To Use Forex Reserves for M and AFrom The Financial Times:China to deploy forex reserves By Jamil Anderlini in Beijing Financial Times Published: July 21 2009 19:09 | Last updated: July 21 2009 19:09 Beijing will use its foreign exchange reserves, the largest in the world, to support and accelerate overseas expansion and acquisitions by Chinese companies, Wen Jiabao, the country's premier, said in comments published on Tuesday. "We should hasten the implementation of our 'going out' strategy and combine the utilisation of foreign exchange reserves with the 'going out' of our enterprises," he told Chinese diplomats late on Monday. Mr Wen said Beijing also wanted Chinese companies to increase its share of global exports. The "going out" strategy is a slogan for encouraging investment and acquisitions abroad, particularly by big state-owned industrial groups such as PetroChina, Chinalco, China Telecom and Bank of China. Qu Hongbin, chief China economist at HSBC, said: "This is the first time we have heard an official articulation of this policy ... to directly support corporations to buy offshore assets." Read the rest of the article Labels: China, financial crisis, foreign exchange, Mergers, Monetary Policy |