The State Administration of Foreign Exchange (SAFE) is the manager of the China’s $2 trillion of cash reserves.
Opps! SAFE began diversifying into equities early in 2007, a move that proved disastrous. Its two biggest blunders were takeover specialist Blackstone and Morgan Stanley. It is estimated that China has lost $80 billion of the $160 billion it invested in U.S. equities.
Think China will be interested in investing a lot more money in the U.S. stock market any time soon?
