Register  
Cashed-up China eyes US investments
Monday, 7 February 2011 12:50pm

Since the GFC, the investment traffic flow has been all one way from Europe and the US into Asia, but signs are emerging that US investment opportunities are attracting Asian interest.

Stirring the most interest appears to be US infrastructure, said Liu Chuanzhi, head of IT group Lenova who said that the $300 billion China sovereign wealth fund discussed the possibilities with US president Obama during the recent state visit by China president Hu Jintao, reported the Asia Wall Street Journal.

Lenovo is seen as having its finger of the pulse of US investments and political attitudes following its 2005 purchase of computer giant IBM.

China already holds an estimated $800 billion in US government debt and any new infrastructure investment, which would be on top of a $1.6 billion placement in March, would be a sign that investment traffic is beginning to flow the other way.

It is estimated the US infrastructure backlog is worth about $1 trillion. By way of contrast, Australia's infrastructure backlog is estimated at about $50 billion.

However, pushing the China sovereign fund is not just altruism but concerns inflationary fears across Asia, driven by record capital flows, is over-valuing Asia investment opportunities.

Investment by China into the US would have other advantages, too, as it would help to relieve some of the currency pressures on the USD while it might send a signals to other Asian investors to follow suit.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

The age of SMSFs
The growth of the number and volume of self-managed super funds (SMSFs) seems to have no end. As the sector reaches the one million ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

BRUMBIE: Walk quietly but carry a big stick
It's now a few weeks since Financial System Inquiry (FSI) chief David Murray handed down his interim report and already sectional advance ... read more
News Search   
VideoBrought to you by
MAX 2014 Highlights
The annual MAX forum places all the movers and shakers in financial services when it comes to sales, marketing and distribution. Find out the recipe of those who are taking the lead. Watch the video n ... Watch video
Platinum Asset Management
Reflecting on more than three decades in the industry, Platinum Asset Management managing director Kerr Neilson says one of the changes in the industry has the been the erosion of the information advantage ... Watch video
AMP Capital Australian Equity Concentrated Fund
We invite you to watch our latest video program on FSiTV featuring AMP Capital's Co-Head of Australian Fundamental Equities Gian Pandit, as interviewed by Mark Smith, deputy editor of Financial Standard. In ... Watch video
Who wants to be a RockStar 2014 Highlights
Count's Chris Mekhail was crowned 2014 Rockstar this year for his soaring rendition of Swedish House Mafia hit 'Don't You Worry Child' at the annual Who wants to be a RockStar event organised by the Finance ... Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
AUG
28
SEP
10
Risk and Liquidity Forum
11
Liability Driven Investing Forum
OCT
07
Major Market Players Symposium
15
Investment Performance Measurement, Attribution & Risk Management
20
Family Office Forum
News
Bites
Advertisement

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something 4lgTtxz5