Identity of China money seeking the other CIC Japan $ 200 billion of capital

Foreign investors owns about 60% of Japanese stocks, but it is “China Money” recently,’s increasing presence among them.What identity of China money flowing into Japan or not.Mr. Zhu flame of Takushoku University, department of politics and economics professor to explain.

Subject of China money likely to flow into Japan is high, divided into four major.

[1] China investment (CIC)

In sovereign wealth funds of China, over half have been with foreign investment frame of the $ 200 billion capital.While laden loss in convertible bonds of Morgan Stanley and Blackstone strain had been invested in the financial crisis, and aggressive foreign investment again from 2009 in the hand the listing gains in the stock of domestic financial institutions that were directed to domestic.In the report submitted the U.S. SEC on (Securities and Exchange Commission) in February 2010, that it had invested the $ 9.627 billion total to 84 companies of the United States listed by the end of 2009 has been revealed.

However, this is merely one end, investments and the remaining were not disclosed.Seen likely to be invested in Japan using the funds are large shareholders shares of Japanese companies such as “OD 05” and high.

[2] State Administration of Foreign Exchange (SAFE)

The operational foreign exchange reserves of more than 2 trillion $ 800 billion.I found U.S. Treasury bonds accounted for approximately $ 900 billion of which, with the remainder being invested in government bonds, such as the yen and euro.That more than 2 trillion yen was also sold Japanese government bonds in August last year has been found, but it is showing a move like buying long-term bonds while selling short-term bonds then.

[3] National Social Security Fund (NSSF)

This is a public pension fund in China, history is longer than the CIC as investment managers.Expected to total current assets amounts to (about 127.5 billion U.S. dollars), but 850 billion yuan, equal to 1 trillion yuan at the end of 2011.20% are able to operate government bonds and corporate bonds, the stock of them overseas, but the breakdown has not been published.

[4] qualified domestic institutional investor (QDII)

The approval of the State Administration of Foreign Exchange, (bank, securities, and life insurance) and financial institutions in China that trading in financial markets overseas are observed, amounted to 88 companies As of the end of last year, investment of $ 68.3 billion I have reached the.It has invested in composition the fund in each financial institution, counted about 250 lines just to bank-affiliated funds, without any one of them fund that has fallen into negative in investment performance, 90% of them that are profitable.

In addition to these, not only listed companies such as Laox and Renown, the acquisition of Japanese companies by the Chinese companies have ranged widely component suppliers and machinery manufacturers of unlisted.In addition, a move to buy the forest land and around Japan Chinese system that lives in Indonesia and Singapore, the so-called “Chinese Money” is also Prominent to come here also it would be fact.

There is also a pair of medium-allergic Japanese side, it is hard to say it will expand at a stretch future, but it is seen as a “cheap” assets in Japan, including both Japanese stocks.From the implications of diversified investment in overseas, inflows into Japan will continue.

※ 5 May 2011 issue Money Post

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