Beijing Says Reports It Will Halt Purchases of US Treasuries Are “Incorrect”

Beijing has provided an equivocal denial to reports that it is considering a slow down or suspension of its purchases of US Treasuries.

As a press conference held on Thursday Ministry of Foreign Affairs spokesman Lu Kang (陆慷) said that “the current initial assessment is that the report perhaps quotes incorrect source of information, and also perhaps false information.”

“Investment of foreign reserves in US Treasuries is market behaviour, and specialised management is performed on the basis of market circumstances and investment needs.”

Earlier this week Bloomberg reported that senior officials responsible for assessing China’s foreign-exchange holdings have called for a slow down or even an outright suspension of US Treasury purchases.

Lu Kang said that China’s foreign reserves have “always been subject to investment management based on the principles of diversification and diffusion, to ensure the overall safety of foreign reserve assets, as well as maintain and increase their value.”

“China’s foreign reserves management departments are responsible investors, with respect to both foreign reserves themselves and all market participants.

“Its relevant investment activities expedite the stability of international financial markets and preserve and increase the value of China’s foreign reserves.”

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