China Increased Its 21 Billion 700 Million US Debt &Nbsp In August, The Largest Increase In A Year.

US Treasury report released 18, China August

The report shows that in August, China's holdings of treasury bonds rose from $846 billion 700 million in July to $868 billion 400 million, but it is still some distance from the peak of US $938 billion 300 million over the past year (September 2009 and October). This is China's second consecutive month of holdings of US Treasury bonds.

According to the data released since August 2009, China has experienced 6 reduction and 5 holdings in one year, and once again.

From the point of view, the rate of reduction is significantly larger than that of holdings. This year and last year, the two reduction of more than thirty billion US dollars has reduced China's holdings of treasury bonds to less than 900 billion. The largest reduction was in December last year, when China reduced its largest US $34 billion 200 million in a year, which kept the holdings for more than 900 billion for the first time to below 900 billion.

The report also showed that in August, the top five creditors of the United States increased their holdings of US Treasury bonds.

Among them, Japan, the second largest creditor country, increased its holdings of US $15 billion 600 million, holding a total of US $836 billion 600 million, breaking the new high in the year. The third largest creditor country also increased its holdings by 74 billion 100 million US dollars, holding the total for the first time to break through the 400 billion pass, reaching 448 billion 400 million US dollars.

Some analysts believe that the size of the Fed's resumption of quantitative easing policy will not be very large, so the space for us dollar to continue to fall is limited. It is based on the judgment of US fiscal policy that every country should make a decision to increase its holdings.

In addition, some economists believe that this is partly due to the fact that US Treasuries are still relatively safer investments in the context of the uncertain global economic growth prospects.

As for the issue of holdings or reduction of US Treasury bonds, Chinese officials have repeatedly stressed that holding US Treasury bonds is a market investment behavior. Increasing or reducing US Treasury bonds is a normal investment operation, and there is no need for political interpretation.

China's State Administration of foreign exchange has said it is totally unnecessary to worry about whether China will use foreign exchange reserves as a "killer" or "atomic weapon".