Australian Treasurer Wayne Swan said he supports Federal Reserve Chairman Ben S. Bernanke’s quantitative easing and Japanese Prime Minister Shinzo Abe’s reflation policy, in contrast to Europe’s hazardous pursuit of austerity as the world economy struggles to shake off the global financial crisis.
The widespread perception that China Investment Corp., the country’s sovereign wealth fund, is linked with other Chinese companies in a global quest for natural resources is wrong, Gao Xiqing, CIC’s president, told the Globe & Mail.
JPMorgan Chase & Co.’s $5.8 billion trading loss this year showed that the financial system is getting too complicated for even respected institutions, the president of China’s sovereign-wealth fund said.
China, the largest foreign lender to the U.S., boosted its longer-term Treasury holdings in September by the most since March 2010 as Europe’s sovereign-debt crisis helped fuel a push for safer assets.
China Investment Corp. Vice Chairman Gao Xiqing said that central banks’ quantitative easing policies are hurting the value of money just one day after the Federal Reserve maintained plans to buy $600 billion of Treasuries.