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Japan to investigate China's bond buying motives

Japan to investigate China's bond buying motives

Japan's Finance Minister Yoshihiko Noda said yesterday the government was closely monitoring China's ramped-up buying of Japanese government debt and would check with Beijing on its motives.
"We are paying close attention" to recent increases in Chinese purchases of Japanese government bonds (JGBs), Noda said during a session of the upper house financial affairs committee, Dow Jones Newswires reported.
"I don't know the true intention" of China regarding its growing appetite for JGBs.
However Tokyo plans to "closely cooperate (with Beijing) and examine its intention," he added.
China bought 583.1 billion yen (US$6.9 billion) worth of Japanese bonds in July, Japan's finance ministry said Wednesday, as the Asian giant continued to ramp up purchases of Japanese debt.
The figure was higher than the 456.7 billion yen worth of securities purchased in June.
The news came after the yen hit a fresh 15-year high against the dollar Wednesday. Currency traders say China's buying of yen-denominated assets, while too small on its own to sharply push up the yen, could be bolstering the currency indirectly.
For the first half of the year, China bought 1.73 trillion yen worth of debt, nearly seven times the full-year record of 253.8 billion yen set in 2005.


Updated : 2021-02-27 12:35 GMT+08:00