China promised to support the North Koreans in the event of a war against South Korea. The Chinese support created a deep division between the Korean communities. It might sound strange from where did this come off. Well it is the story of the China and the Korea war where china supported North Korea to fight against South Korea in the year of 1950. China is amending its old broken relationships with various nations. It is busy in formulating political strategies of erasing the mistakes crept in the history.

Recently Chinese polices for its economic growth have been focused within the Asian economies. China is now building new relationships with South Korea. SEOUL—Sovereign wealth fund Korea Investment Corp has received final order to diversify their savings and investments into the roads of china. They will purchases Chinese Class A shares and bonds. The Korean investments corp has received its Qualified Foreign Institutional Investor license. It is now waiting only for the Chinese authorities to set its investment quota.

The BOK and the Korean National Pension Service are the ones who will get the license to move ahead with an historic investment which will begin sometime in 2012.The prime reason behind such an investment opportunity being opened by China is to stop the East Asian economies from doing investment into dollar related asset classes. China is moving to allow greater foreign investment in its local capital markets, and attracting longer-term investors such as KIC, the BOK and the NPS—the world's fourth-largest pension fund by assets. China is expected to allow all three Korean institutions to start investing in yuan-denominated bonds and stocks. Mark the point no dollar term investments being allowed reveals that China is moving according to the planned game of making yen an trading currency. I have depicted this story many times in my previous articles that China will make Yen another trading currency apart from dollar.

For the time being KIC, which managed roughly $41.5 billion in assets as at end-2011 has been provide the $200 million quota at the start which is according to the rules of being qualified as an QFII. This limit will increase further going ahead. At the same time china is shifting the focus of East Asian economies from doing investments in Europe and US assets which posse and significant threat to these debt laden economies. It seems that china is going to make the recovery process of Europe and US very difficult and challenging.

In my research I have further drilled out that according to the data from State Administration of Foreign Exchange till late December china has allowed $950 million in new investment quotas to QFII license holders since October. This has put the total amount of foreign capital that can be invested in Chinese markets to $21.64 billion. Well china is going steady with its plans of making Yen and trading currency and other economies are also behind the silent support.