News first reported by the Wall Street Journal last week appears to show a massive shift in the currency composition of China’s reserves. The numbers appear to show that the proportion of China’s $3.2 trillion that is invested in dollar assets had fallen from 65% to 54% from June 2010 to June 2011.
While these figures cannot be confirmed, they are nevertheless an indication that a serious macroeconomic rebalancing is underway. And this will have large implications for companies in Asia in how and where they finance themselves.
“It is to be expected that China, aware like many other central banks of the dangers of holding too...
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