China will move on yuan when stimulus packages end: banker

China will look at revaluing its currency when global partners begin to withdraw their stimulus packages, a top Chinese central banker said Saturday. However, Zhu Min, deputy governor of China's central bank said revaluation would not fix world trade imbalances. He told the World Economic Forum in Davos that China is trying to raise domestic consumption, but warned it would take time to get thrifty Chinese to spend more.

Strauss-Kahn said. But he warned that Chinese consumers are far from able to offset lower US consumption. In a separate session, Standard Chartered bank's group chief executive Peter Sands said there was no quick fix to China's currency dilemma. "I think there (are) a lot of simplistic things said about the renminbi. Some seem to believe that if it were revalued, all the macroeconomic imbalances will disappear instantly. That's just wrong. It's far too simplistic," he said. He pointed out that the value of Asian economies has increased, and that "value is going to be reflected in the way Asian currencies are valued relative to the western" currencies.

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Feb. 26 (Bloomberg) -- Yuan forwards rose after a local newspaper reported that the government is assessing the likely impact of currency gains, fueling speculation appreciation will be allowed to resume.

“There may be some reaction in the market to the news,” said Li Wei, an economist at Standard Chartered Plc in Shanghai. “Investors may speculate the resumption in yuan appreciation is around the corner.”

“The day they decide to float their currency you are going to get huge reversals of financial flows around the globe, which will affect all exchange rates, that’s why I compared it to a tsunami,” Costello said.

The naming of a senior Chinese central bank official as special advisor to the IMF chief will "help strengthen cooperation" between the Fund and emerging nations, the spokesman for the Chinese embassy said Wednesday.

But after getting burned by the financial crisis that emerged in 2008, the sovereign wealth fund has been shifting to real estate.

Chinese real estate acquisitions to date have hardly been trophy properties.

Chinese companies have learned that allying with partners tends to draw less attention, said Wenran Jiang, a China expert at the University of Alberta who has studied Chinese investments around the globe.

When multiple parties are involved in a deal, he said, the Chinese buyer's stake gets diluted. "So you can't report that the Chinese are taking over."

March 16 (Bloomberg) -- China and Japan, the two biggest foreign holders of Treasuries, reduced their positions of U.S. government debt in January as a measure of demand for American financial assets fell to a six-month low.

China remained the biggest owner abroad of Treasuries, even as its holdings dropped by a net $5.8 billion to $889 billion, according to Treasury Department data released yesterday in Washington. Japan cut its holdings in January by $300 million to $765.4 billion, the report showed.

The gold-plated credit rating of the United States — an article of faith across America and, indeed, around the world — may be at risk in coming years as the nation copes with its growing debts.
That sobering assessment, issued Monday by Moody’s Investors Service, provided a reminder that even Aaa-rated United States Treasury bonds, supposedly the safest of safe investments, could be downgraded one day if Washington failed to manage the federal debt.