Japan plans to purchase up to USD 10 billion worth of Chinese government bonds through special account for exchange fund. Japan is expected to reach an agreement with China at the Japan-China Summit to be held on Dec. 25, said Jun Azumi, Japan’s finance minister, on Dec. 20.

In line with the Japanese Prime Minister Yoshihiko Noda 's first visit to China, this is one of the measures adopted to deepen the strategic mutually beneficial relationship between China and Japan.

At a press conference, Azumi denied that the purpose of this measure is to reduce the proportion of dollar and euro in its foreign exchange reserve, and he stressed that Japan needed to strengthen the Sino-Japanese ties by holding Chinese government bounds.

Source:chinesestock