Japan is discussing investing in Chinese government bonds as part of a broader effort to strengthen financial and economic ties with its largest trading partner.
The two governments are in talks about opening China’s government bond market to Japanese investment ahead of a meeting this Sunday between Yoshihiko Noda, prime minister, and Hu Jintao, the Chinese president.
“As we have to deepen economic ties, we are having many discussions. We believe the mutual benefits of investing in each other’s bonds would be substantial,” said Jun Azumi, Japan’s finance minister.
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