Another Japanese punch for China | Japan cancels China bond market.

TODAY NEWS -- Dec 05
Japan’s Government Pension Investment Fund (GPIF) has announced that it will not invest in Chinese government bonds.

This is bound to create a ripple effect as GPIF is one of the biggest institutional investors in the world. When an institutional investor of such a gigantic size cancels a bond market, it leaves a major psychological impact on the smaller investors.

Any decision by GPIF or any other large institutional investor to cancel a bond market does leave a profound psychological and monetary impact. It is going to make a lot of investors and funds wary of diving into the Chinese bonds.

Once China’s real estate bubble bursts, you can easily imagine the Communist nation slipping into an economic recession and Japan’s decision to cancel China’s bond market doesn’t give a very good signal for Beijing.