The Central Bank Has No Need To Rush To "Clear The Boundaries".

The US Treasury report shows that China reduced its US $22 billion debt in July, the largest reduction in nearly three years.

The central bank sells a large amount of US dollar treasury bonds. What can we expect from ordinary investors who want to deploy their assets abroad? How can we make assets 10 times in 10 years?

Many domestic ordinary investors have foreign currency.

Relatively unfamiliar, sometimes, the impression that foreign currency financing has made high returns to investors is because they contain many high threshold and high yield financial products which are only open to high net worth users.

In July, China reduced US $22 billion in US debt, and its reduction in scale was the largest in nearly three years.

The total size of US debt holdings after the reduction is US $1 trillion and 218 billion 800 million, which still maintains the status of the largest overseas creditor in the United States.

What does this mean for investors?

The reduction of the central bank is also going smoothly.

After all, in the past year, the overseas central bank sold us bonds to US $343 billion, setting a new high.

This is related to the issue of US debt credit: in August 6th, the international rating agency Standard & Poor's officially announced that the US AAA class long term sovereign debt rating would be reduced to AA+, and the outlook for the rating would be "negative".

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A major reason must be due to credit considerations.

Then, should investors put the US debt into the restricted area and not touch the related financial products?

In the case of investors with the necessary allocation, US debt is still a good choice.

Although credit anxiety may cause market volatility, the recent gains of US bonds will enter the downstream channel, but this does not mean that the US default and investors lose money.

Although the central bank has reduced its US $22 billion debt, the largest decline since December 2013, it still maintains the status of the largest overseas creditor in the United States. This shows that the US debt occupies an irreplaceable position in safeguarding asset security.

No matter whether credit anxiety is getting worse or worse, the US debt has never been violated.

Because of the economic strength of the United States and the international status of the dollar.

Investing in US debt needs to set up a specific account, and the QDII threshold for the most grounded gas is also high.

For ordinary investors, buying Treasury bonds in the United States is obviously not as good as going to the bank to change the dollar.

Since 2015, the yuan has been depreciating against the US dollar. Should it be worth the dollar? For the vast majority of investors, this is not the case.

"Global asset allocation" has increasingly become a hot word in the investment sector. Dollar assets will remain the most robust asset value in the world for quite some time. But for millions of investors whose capital is not up to 100 million, investors who want to earn profits are not worth it.

Foreign currency financing is very necessary for investors who have real needs such as studying abroad, Hai Tao and large asset maintenance.

It is suggested that in the course of foreign currency financing, special attention should be paid to investment duration and prudent selection of banks invested.

We should pay special attention to the term of investment, because under normal circumstances, foreign currency financing is not allowed to be redeemed in advance.

In addition, it is suggested that foreign banks should be selected, because generally speaking, foreign banks provide the highest returns and enjoy preferential activities from time to time.

However, according to the recently published first half Bank report in 2016, the rate of losing money of foreign banks' financial products is higher than that of state-owned and joint-stock banks, so it is very prudent to choose banks.