In China, Another Bout of Fannie-Freddie Fear
(Beijing) – When the U.S. government recently announced plans to wind down its monolithic mortgage institutions Fannie Mae and Freddie Mac, fresh shock waves rippled through some of China's largest, state-backed foreign investors.
And for good reason: Fannie and Freddie owe hundreds of billions of dollars – about US$ 454 billion combined as of June 2009 – to a wide range of Chinese investors, including the central government's State Administration of Foreign Exchange (SAFE) and some of the country's largest banks.
For years, these U.S. government-backed pillars of the American mortgage industry served as a symbolic backbone for China's foreign holdings. They also offered relatively solid yields with little or no risk.
- WeChat 'Glitch' Allows Family to Raise over 2 Million Yuan in 80 Minutes
- China's VAT Rebate Reform Aims to Boost Local Government Fiscal Strength
- Share Splits Raise Stock Market Suspicions
- China Faces Severe Coal Transport Capacity Shortage
- Audi Scraps Plans for New China Dealer Network
- Regions Found to Have 'Critical' Heavy Metal Emissions Now Clean Up Act
- Official PMI Spikes as Producer Prices Rise, Exports Surge
- China Adds 10% Consumption Tax for Superluxury Cars
- News Calendar, December 5-11
- Caixin's Manufacturing Indicator Dips to 50.9 in November
- Sign up to receive our free daily newsletter