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2012-01-20

China - Investments in Europe

Several analysts believe that China will seek investments in Europe as a way to help the indebted continent, but it is not because of its large foreign exchange reserves.

China will not invest in Europe because of any moral obligation either; it is rather a pure business decision.

Insolvent government bonds are not in focus, only a small part of China's huge foreign exchange reserves (U.S. $ 3.18 trillion) is invested in European government security. However, future investments will include the private corporate sector, national assets and major infrastructure projects, all based on strict business principles.

In addition to that China is looking for investment opportunities in Europe, the energy sector in Brazil is also interesting.

                                                                                 Cecilia Helland

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