• Beijing is re-examining its U.S. investments, say people familiar with the government's thinking.
• Chinese government investments got burned with Morgan Stanley, the collapsed Reserve Primary Fund and mortgage giants Fannie Mae and Freddie Mac.
• Chinese central bank last year stopped lending its Treasury holdings for fear the borrowers will go bankrupt.
• China the largest foreign investor in bonds from Fannie Mae and Freddie Mac -- has been sharply trimming its holdings of that debt.
• Shares fell 60% in the $5.6 billion stake in Morgan Stanley purchased by China's sovereign wealth fund, China Investment Corp. (CIC, 13 months ago.
• CIC has sustained large paper losses on the $3 billion it invested in Blackstone Group LP in June 2007, as well as the Morgan Stanley stake.
• CIC's nearly $5.4 billion investment in the Reserve Primary Fund, the money-market fund that "broke the buck" in September as a result of the Lehman collapse, has asked the US to redeem it. That has not been done yet, causing worry about US credibilty.
• The Chinese government has received briefings from the former secretary of treasury on the financial crisis. This shows the depth of communication - At one briefing for Chinese officials to explain the change, said people present, they questioned and debated the meaning of nearly every line of the new Treasury plan.

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