China could buy up oil amid Dubai debt debacle

China could make use of Dubai's debt debacle to buy up gold and oil assets as it tries to diversify the asset and currency composition of its foreign exchange reserves, Reuters reported, citing state media. State investment holding company Dubai World announced last week that it was to delay debt repayments by half a year, triggering regional and worldwide fears of another market collapse. Ji Xiaonan, chair of the supervisory board for larger state-owned enterprises under the State Council's state assets commission, said the effects of this latest crisis could last a while, and "that could give China a buying opportunity to put some forex reserves into gold or oil reserves." China's US$2.27 trillion worth of forex reserves are mostly targeted at US Treasuries, but there have been growing calls in China to secure interests in oil and other resources.

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