Credit markets shrinking China still has cash - Aussie Stock Forums

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  1. #1

    Default Credit markets shrinking China still has cash

    In relation to credit been harder to come by I can see this as a real good situation for companies and sectors which may have alot of interest from China.

    Not sure if my logic is right but

    China seems to have piles of cash so doesn't require borrowing for investments and if other countries and companies cant get money to buy investments the price of these investments will drop. Perhapes the Chinese will move in and buy strategic assets with their money.

    My stratagy has been to sell off most my portfolio and still hold interests in companies closely related to Chinese interests.

  2. #2
    gfresh's Avatar
    Join Date
    Jun 2007
    Brisbane, QLD

    Default Re: Credit markets shrinking China still has cash

    Chinese cash is held in USD .. In fact their currency is pegged to the USD

    USD will be worth less.. Less buying power = same problems as everybody else.

    The US-China relationship is a double edged sword.

  3. #3

    Default Re: Credit markets shrinking China still has cash

    I agree but the even as the US dollar drops it will be likely that the value of assets will also drop and buying power will not be diminished that much. That said they still have a trillion dollars in what could be a fire sale

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