China's purchase of Japanese government bonds will reduce Japan's debt burden, but this behavior may contribute to the appreciation of the yen. Japanese government bonds are mainly digested domestically. Although the issuance volume is large, it does not pose a great threat to finances.

Once the influence of Chinese capital increases sharply, it may have a greater impact on Japan's government bond market in the long run.

In the medium to long term, the foreign exchange reserves of China and other Asian countries are pegged to Japanese yen assets, which may contribute to the appreciation of the Japanese yen.

Although China's purchase of Japanese yen assets is not enough to drive a sharp rise in the yen, it may indirectly affect the price of the yen because China's foreign exchange reserves are very large and many hedge funds and other investors are very sensitive to China's investment strategies.

, they may follow China and invest heavily in the yen.