Finance Minister Bill English says there are several Asian countries, not just China, which are keen to invest in New Zealand bonds.
Fresh from a visit to Singapore, Hong Kong and China, Mr English said on Friday those countries want to invest less of their large cash reserves in the United States and are instead eyeing New Zealand and Australia.
There has been speculation that China has a $6 billion fund ready to invest in New Zealand, but Mr English says he is not aware of that specific figure.
However, he says China, along with neighbouring Asian economies, have large cash reserves compared to the cash-strapped European countries, so it makes sense for them to lend to New Zealand.
"There's been a big shift in the economic balance in the last few years where the Asian countries now have very large reserves and our traditional markets have big piles of debt.
"When you have to borrow - as we do - then you're keen to be borrowing more from the people who've actually got the cash to invest, and that's what's happening."
After big gains on Thursday, the New Zealand dollar continued to climb on Friday, gaining more than 1 cent and at one stage reaching US81.9 cents, its highest point sine March 2008.
Economists attribute that to high commodity prices and the weakness of the US dollar.
Mr English says the exchange rate has been volatile and it is concerning to see the New Zealand dollar rising to these levels for those exporters who trade with countries using the Greenback.
"The dollar has stayed higher against the US dollar than we, or I think anyone, expected.
"We're fine with Australia, where we've got the lowest dollar we've had in a long time and New Zealand businesses selling to Australia are very competitive and are starting to do well. Our exporters have had to be very resilient."
Mr English says he has long since given up trying to predict where the dollar is going to go, and would not venture an opinion as to whether he expects it to hit the record high of US82 cents against the American dollar.
Chinese investment 'positive move'
Beijing-based merchant banker David Mahon says Chinese investment in New Zealand would be a positive move, and investment deals can work to favour both countries.
"China looks at New Zealand as having excellence in agricultural technology. We all know that there are designs on farms - and that's a part of it - but the larger story is trying to find ways to secure New Zealand technology.
"So given our almost state of near-insolvency as a country, this is a very positive thing for New Zealand."
