Timing is important for Chinese finance investment

Today LSE lecturer Nilesh Dattani told me that the Chinese investment in the world financial market, like the deal with private equity Blackstone and Barclay, is clearly a step in the right direction, however, he warned that China should have paid more attention to the timing of the investment. So far, the financial market is a little over bullish, and some kind of correction of the market is quite likely to happen. Today's FT reported that both European and UK equity markets were highly volatile after stocks in Asia and the US tumbled heavily amid a flight from risk over persistent fears about exposure to credit markets.

So Chinese investment came right in the middle of the market peak, and consequentially have to pay far more than if they bought shares a few months earlier, or a few months later when the correction of market takes place.

I think Mr. Dattani made a very good point. Chinese government could be quite eager to make investment, and diversify the already massive foreign exchange reserve, but more haste, less speed. We may need to do it in the right time to achieve the right result.