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Bank of China Exec: Wall Street Overconfident

By    |   Friday, 11 Sep 2009 04:15 PM

The Chinese onslaught against the United States over economic issues continues, with Bank of China Vice President Zhu Min criticizing Wall Street for complacency in the wake of the financial crisis.

Bank of China is the country’s third-largest bank.

“You go to Wall Street, the people feel the crisis never happened,” Zhu told Bloomberg.

“It’s not only overconfidence, it’s over-myopic. This is too much.”

Much of China’s criticism has focused on the growing U.S. debt burden and the dollar’s role as the sole reserve currency.

In March, Premier Wen Jiabao said he was “worried” about China’s investment in U.S. Treasuries, now $776.4 billion, and wanted assurances that they were safe, Bloomberg reports.

As for Zhu, he told Bloomberg that the credit crisis isn’t over yet.

“It’s sort of stabilized from a cliff drop,” he said. “But the real economic crisis has just started.”

Zhu expressed some concern about China’s economy too.

“The potential risk is that a lot of liquidity goes to the asset market,” he said.

“So you see asset bubbles in commodities, stocks and real estate, not only in China, but everywhere.”

The Shanghai Stock Exchange Composite Index has soared 61 percent this year, topping the MSCI World Index by 41 percentage points.

China’s concern about the United States apparently hasn’t spread to its sovereign wealth fund China Investment Corp. The fund is looking at plowing some of its $300 billion kitty into U.S. real estate.

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The Chinese onslaught against the United States over economic issues continues, with Bank of China Vice President Zhu Min criticizing Wall Street for complacency in the wake of the financial crisis.Bank of China is the country’s third-largest bank.“You go to Wall Street,...
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