China's New Acquisitive Craze: From US Treasuries To Gold

The latest soundbites from China suggest that Beijing is getting serious about diversifying into gold. Just as TICs data have just shown that China sold over US$34bn Treasuries in December 2009 (not that any broad conclusions can be drawn from one month's transactions), the following two facts are particularly timely in highlighting China's increasing interest in accumulating gold assets. First, it was reported earlier this month that China Investment Corporation, which is China's sovereign wealth fund, took a 1.45mn share stake in the SPDR Gold Trust ETF worth US$155.6mn. Second, state-owned conglomerate China National Gold Group Corporation announced plans last

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