How best China can fend off financial risks

The Wall Street has experienced a once-in-a-century financial turbulence over the past weeks, with a number of old financial bodies falling apart. To defuse the possible catastrophic aftermaths of the unprecedented financial crisis since the Great Depression (1929-33), the Bush administration rushed to take an array of rescue measures and tried to get them through the Congress for their implementation.

Almost all the world's players have been affected by the crisis and braced themselves for possible challenges ahead. Whatever effects these emergency measures will possibly bear, the ongoing US mortgage debts-induced financial crisis is expected to produce an inestimable influence upon the US financial market and the world's economy as a whole.

Take China. The Asian nation's huge investment in the US, both its dollar-holding foreign reserves and a lot of US equity products bought by its domestic financial bodies, are now at the risk of wealth losses.