Germany has edged out China as the world’s second-largest supplier of external credit for the first time in at least a decade last year as the latter’s authorities spent big to support a weakening yuan.
According to calculations by Bloomberg using Japan’s Ministry of Finance data, China’s net foreign assets fell to $1.6 trillion at the end of last year while Germany’s rose to $1.62 trillion. Japan, the top creditor since 1991, remained the biggest with $2.82 trillion. Nevertheless, China is still predicted to eclipse Japan to become the world’s largest net creditor in coming years.
China also remains the biggest foreign owner of U.S. Treasury securities, with $1.25 trillion as of year-end.
Meanwhile, China’s overseas asset purchases are now coming increasingly from the private sector and state enterprises, not from the official sector. The biggest destinations for overseas Chinese investment are the US, Australia and UK.
To read the whole article, China Loses World No. 2 Creditor Rank to Germany Amid Yuan Woes, go to the website of Bloomberg. In addition, check out our China closed-end fund list and China ETF list pages.
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