Latest News:  
Beijing   Foggy/Cloudy    20 / 11   City Forecast

Home>>China Business

China cuts holdings of US debt

(China Daily)

09:03, October 20, 2011

Analysts said that the reduction of its holdings of US debt indicated that China has adjusted its foreign-exchange investment portfolio after the US credit rating was downgraded by Standard & Poor's in August.

"It is a normal market-based operation by the Chinese government. It has to do with the volatile market conditions after the downgrade of the US credit rating," said Guo Tianyong, director of the China Banking Research Center at the Central University of Finance and Economics.

China currently holds $1.137 trillion of US Treasury debt, meaning that the country is still the largest foreign owner of US debt, according to data released by the US Treasury Department on Tuesday. The August reduction was the first time that China had trimmed its US debt holdings in five months after a net purchase of more than $8 billion in July.

Some analysts said that the sell-off does not necessarily mean that China has lost faith in the US dollar. Instead, they said Beijing may want to allocate more assets to US corporate bonds, which offer more stable returns.

Analysts were also unsure as to whether US Treasury data, known as TIC data (Treasury International Capital System), will reveal an accurate picture of China's holdings of US debt.

【1】 【2】


Leave your comment0 comments

  1. Name


Selections for you

  1. College arts on exhibition in east China

  2. Specimen of legendary elephant in Taipei

  3. Three Gorges Dam water level reaches 174.18m

  4. Violence greets new Greek efforts to cut public spending

Most Popular


  1. Chinese culture of peace promotes development
  2. Red flags raised as Japan mulls repeal of arms ban
  3. Job death shows Americans' love of big business
  4. Wall Street leads the West to a world of chaos
  5. Are China's forex reserves too big?
  6. Signs of higher mortgage rates
  7. Taobao Mall suffers from growing pains
  8. Is investing in forex cost effective?
  9. China needs cultural power
  10. Small vendors' wrath

What's happening in China

Themed restaurants attract many curious customers

  1. Farmer sold as slave to factory 'over complaint'
  2. School in NW China halts use of green kerchiefs
  3. Overuse of antibiotics concerns officials
  4. Survey shows people lack trust in each other
  5. Future bright for problem solvers in Party

PD Online Data

  1. Dragon Boat Festival and Qu Yuan
  2. Hanging Pictures of Zhong Kui
  3. Fragrant bag
  4. Dragon boat racing
  5. Zongzi in Dragon Boat Festival