Tuesday, January 1, 2008
Subprime, Peking Edition?
I don't know enough about the subject to offer any analysis, but this seems noteworthy:
Central Huijin Investment Co. (Huijin), an investment arm of the Chinese government, signed a contract with the China Development Bank (CDB) onday to inject 20 billion U.S. dollars into the state-owned policy bank.
The investment, ratified by the State Council, would sharply raise the CDB's capital adequacy and improve its risk-prevention capability, said a press release by the People's Bank of China, the nation's central bank.
Add this to the Fed and ECB's credit injections, the Chinese forex equity injections into Blackstone and Morgan Stanley, and the Singapore forex equity injection into Merrill Lynch, and that makes roughly $80 billion in cash that the world's central banks have pumped into the global credit market in the past weeks to months. Not all of that can be to cover housing foreclosures in backwater American real estate markets.