Report: China Ready to Shed Risky Dollar Assets

Tuesday, 16 Feb 2010 08:55 AM
By: Forrest Jones

China reportedly is ready to shed risky dollar-denominated assets from its reserves, holding on to only instruments guaranteed by U.S. government.

A Communist Party directive leaked to the Chinese-language edition of the Asia Times said dollar reserves should be limited to U.S. Treasuries or agency mortgage debt such as Freddie Mac that has Washington's backing.

Analysts say the move signals Beijing's worries that trouble is brewing.

“The message from Beijing is that we don't like this environment,â€