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Reuters

China will buy more Malaysian government bonds and give the country a 50 billion yuan (HK$60 billion) quota to invest in Chinese stocks and bonds as it looks to strengthen ties with Southeast Asia.
Premier Li Keqiang announced the moves at a business forum in Kuala Lumpur, the state news agency Xinhua reported on Monday. No further details were immediately available.
Li was in Kuala Lumpur for the Association for Southeast Asian Nations summit that ended on Sunday. He was due to hold talks with Malaysian Prime Minister Najib Razak on Monday.
China said at the weekend it was offering US$10 billion in infrastructure loans to Southeast Asian countries along with aid to the region's underdeveloped states as it seeks to expand its influence in the developing world.
READ MORE: South China Sea fears linger despite Beijing’s loan and aid pledges at East Asia Summit
China is Malaysia's largest trade partner and they have close diplomatic ties.
Li said China would buy more Malaysian treasury bonds to help stabilise its financial markets.
Investor confidence in the country has faltered as weak commodity prices take a toll on the economy and a scandal at an indebted state fund raises questions over Prime Minister Najib Razak's leadership.
The ringgit is the worst-performing emerging market currency in Asia so far this year, having lost 19 per cent of its value against the US dollar, while the country's benchmark stock index is down about six per cent.
Malaysia posted its slowest economic growth and smallest current account surplus in over two years in the third quarter.
Malaysia will also be allowed to invest in China's capital markets through its new quota in the Renminbi Qualified Foreign Institutional Investors plan, Li said.
READ MORE: Embattled Malaysian PM Najib pledges funds to shore up stock market
Neighbouring Singapore said earlier this month that China had doubled its quota to 100 billion yuan.
Beijing's relations with Southeast Asian countries have been strained recently over China's reclamation and construction in disputed South China Sea islands.
Beijing claims 90 per cent of the South China Sea, which is believed to be rich in oil and gas.
Its claims overlap with those of Brunei, Malaysia, the Philippines, Vietnam and Taiwan.


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China to help shore up embattled Malaysian economy by buying more government bonds

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Malaysian Prime Minister Najib Razak is embroiled in a scandal over a government investment fund. Photo: Reuters

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China to help shore up embattled Malaysian economy by buying more government bonds

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.css-jfmysa{display:inline;word-break:break-word;}.css-1ankfgb{cursor:pointer;display:inline;word-break:break-word;}READ MORE: South China Sea fears linger despite Beijing’s loan and aid pledges at East Asia Summit

READ MORE: South China Sea fears linger despite Beijing’s loan and aid pledges at East Asia Summit