Interesting and unusual headline.
China doesn’t care about exports to Japan and may be ‘helping them’ by selling some of its yen reserves?
They may know Japan is going to get serious about keeping the yen weaker with direct intervention so China is front running them?
By Michiyo Nakamoto
October 8 (FT) — China sold a record Y2,000bn ($24.3bn) in short-term Japanese bills in August, suggesting that their hefty buying earlier this year was not aimed at diversification into the yen as some had speculated. Chinese investors had bought a net Y2,300bn in Japanese bills and bonds between January and July. Chinese investors were slight net buyers of medium- to long-term Japanese bonds in August, to the tune of Y10.3bn. Coupled with their record net selling of short-term bills, Chinese investors’ total net buying of Japanese bills and bonds so far in 2010 fell to Y297.6bn. That is still slightly above the annual record for Chinese net buying of Japanese debt, of Y255.7bn, recorded in 2005.