China Reduces Holdings of US Treasuries in November

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China reduced its holdings of US sovereign bonds in November 2017 following an increase of USD$8.4 billion the previous month.

Official data indicates that China reduced is holdings of US treasuries by USD$12.6 billion in November, bringing the total to $1.1766 trillion.

China nonetheless remains the biggest foreign creditor of the US, with Japan, the second largest holder of US treasuries, reducing its stash of sovereign bonds by $9.9 billion in the same month, trimming its own total to $1.0841 trillion.

Beijing recently denied reports circulating overseas that it was planning to cut down or even bring a halt to purchases of US treasury bonds.

By December last year China had increased its forex reserves for 11 consecutive months, bringing the total to $3.14 trillion.

Beijing adopted measures including capital controls and a crackdown on outbound foreign investment to bolster its foreign reserves towards the end of 2016, in the wake of an overseas acquisitions spree by cash-flush Chinese companies and heavy spending to stabilise the yuan.

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