China increases US treasuries holdings in February

Source:Xinhua Published: 2018/4/17 9:31:10

China increased its holdings of US Treasury securities in February, after falling to a six-month low in January.

China raised its treasuries holdings by 8.5 billion US dollars to 1.1767 trillion dollars in February, said the US Treasury Department on Monday. China remained the largest holder of US treasuries.

Japan, the second largest holder of US treasuries, cut its holdings by 6.3 billion dollars to 1.0595 trillion dollars in the month.

By the end of February, overall foreign holdings of US Treasury securities rose to 6.2916 trillion dollars.

As US President Donald Trump is taking a tough stance against China on trade, investors are keeping a close eye on China's holdings of the US treasuries.

In response to market concerns that China could reduce its treasuries holdings as a countermeasure against US tariff actions on Chinese products, Chinese Vice Finance Minister Zhu Guangyao said earlier this month that China is a responsible investor and respects international capital market rules.

"China manages its foreign exchange reserves via market operations in accordance with market rules, specific market principles and the principle of diversified investment," he said, citing remarks made by Chinese Premier Li Keqiang on forex reserves management last month.

China's foreign exchange reserves rose to 3.1428 trillion US dollars at the end of March, according to data from the People's Bank of China.

Posted in: ECONOMY

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