The CNOOC bid presumably is motivated by two things. One, Beijing has plenty of cash, and already holds more Treasuries than it wants, so it wants to diversify its portfolio. As I argued earlier, C…

The RMB has appreciated by about 7% against one of China’s major trading partners this year. Not the US, obviously. But that doesn’t mean that China is not exposed to moves in the dollar-euro, or t…

Sovereign funds argue that they are only interested in financial returns. And to be sure, they do care about financial returns. Losing money generally isn’t good for a sovereign fund’s long-term h…

The Rubin doctrine of international finance (From In an Uncertain World):1. The only certainty in life is that nothing is ever certain.2. Markets are good, but they are not the solution to all proble…

China's Alan Greenspan (Zhou Xiaochuan) has indicated China won't roil financial markets with "active composition adjustments of the foreign reserves."  fine.   But any central bank adding about $20 …