How much is China getting back from Freddie and Fannie?

Wikipedia This weekend financial authorities in the United States are coming up with their plan to bail out their key mortgage lenders Freddie and Fannie, writes Market Watch. For sure some people in Beijing are also having sleepless nights.
China's four major banks decided already earlier to cut their losses in August, rather than wait for the official end of both financial giants. Unclear is who was nice enough by then to actually buy the worthless paper from Freddie and Fannie. Even more unclear is the question how many other Chinese financial institutions still hold possessions in those US institutions and how much they might get back.
The package that is put together is weekend is worth an estimated USD 5 trillion, so even the total Chinese part in US-denominated papers of about USD one trillion is only a minor percentage of the total damage. But Chinese institutions will need alternatives for the foreign debt they are building up, and that might mean a boost for other economies like Europe and Japan.

Update: See also this interesting entry on how the US have screwed China. 

Commercial
At the China Speakers Bureau, we have a wide range of speakers who can help you to make sense out of China's position in the current global financial mess. Do check with our speakers on finance or on China's economy. Do get in touch with us, if you want to check the availability of those speakers.

Related articles by Zemanta

• China replaces US as Japan's biggest trade partner