According to a New York Times report in early September, the Chinese Central Bank has invested over USD $1 trillion on U.S. Treasury bills, bonds and debt securities. Among the one trillion dollar bill, $376.3 billion have been put into the mortgage backed securities of Fannie Mae and Freddie Mac, which constitutes 21% of the Chinese government foreign currency reserve.
Back in mid August, Lew Mon-hung, a representative of the Chinese People's Political Consultative Conference wrote in several mainstream newspapers in Hong Kong to criticize the investment decision. His opinion has been censored by mainland Chinese mainstream media, but distributed widely on the internet. Chenjian is among one of the mainland bloggers distributing Lew's viewpoint:
As a member of Chinese People's Political Consultative Conference and with my experience in the finance sector, I am here to question the decision makers at the central government finance sector: you guys are the family's failure, where do you get the balls to take people's money to buy such a huge amount of fannie and freddie's securities. Now they are bankrupted, how are you to take the responsibility?
A nation's foreign currency reserve is not the net income of the country, when hot money flows out of the country, the reserve will be reduced. That's why it is important to have safe investment, and it is necessary to diversify the risk. To put more than 20% of our foreign currency reserve on Fannie and Freddie, is a serious mistake.
中國光是 向「兩房」已投下相當於海内外給四川地震捐款一百多倍的外儲，如此側重美元資產，依據何在？眼光何在？如此離譜決策有沒有黑幕，人大常委會應立即組織特別 調查組應予徹查，追究責任！
Another article consisted of conspiracy theory that has also been circulated in forums and blogs, One World One Dream reposts the article in full.
The writer urges netizens to re-post this article in official websites in order to warn the leader against such financial decision.
ASM is also on the side the conspiracy theory and maps out the steps on how the US government seized away fortunes from the rest of the World (zh).
China becomes a loser
Shi Hanbin, a local finance expert was interviewed by CCTV on the impact of US financial crisis on China on September 22. He further elaborates his viewpoint in his blog:
Shi Hanbin also questions how the investment decision was made:
Zhanghui noticed that after the first outbreak of sub-prime crisis in Europe back in August 2007, Chinese banks haven't reduced their investment in asset backed securities. On the other hand, there is a net increase of US$59 billion between August 2007 and May 2008. Now, European countries can say no to the US$700 billion “bail-out” proposal, but China cannot.
Even though the Chinese and American government share the same interest in the crisis, many netizens feel it is a painful lesson for the Chinese. Here is another widely circulated opinion article quoted from Hong Kong newspapers (via dmxianfeng):
There are votes and comments at the China Daily forums on: Should the U.S. Congress pass the $700b bailout plan?  Although it might not reflect popular opinion, it's still worth a look.