Japan allowed to buy China state bonds

Chinese authorities have approved Japan's purchase of up to 10.3 billion dollars' worth of Chinese government bonds to strengthen the two countries' economic relations, a Japanese minister said Tuesday.

The amount is “appropriate,” considering “the purpose of the investment, which is to enhance bilateral economic relations, including the promotion of exchanging information between Japanese and Chinese authorities,” Finance Minister Jun Azumi told reporters.

The minister added Tokyo had received the permission from Beijing Thursday.

Japan had applied for an allotment since Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao agreed in December to enhance bilateral cooperation in the area of international finance.

Beijing manages inflows and allows only designated countries to invest in a limited amount of its sovereign debt. - Sapa-dpa