China Goes for Gold

With the Chinese government buying a $3 Billion (8%) stake in Blackstone Group, could McDonalds or Starbucks be their next target? It seems as obvious as a Yao Ming dunk. China has traditionally invested in conservative US T bonds, but no longer. Rumor has it that China wants more out of its growing foreign reserves and will even establish a foreign investment agency to enthusiastically chase higher yields in the coming months. As the US dollar continues to decline on world markets, China seems to be poised to begin a US shopping spree. US franchise systems may be the on the list. As the 2008 Olympics get nearer, China may have enough hard ware to make the final medal round.