As China continues to scale down its exposure to US Treasury bonds, experts have said such steps are necessary given the deteriorating overseas debt situation of the United States and China’s need to optimize its own overseas assets structure.
According to the Treasury International Capital data released by the US Treasury Department on Tuesday, as of October, China held a net $769.6 billion worth of US government bonds, down $8.5 billion from a month earlier and the lowest since 2009. It is also the seventh consecutive month that China’s investment in US Treasury bonds has shrunk.
China is the second-largest foreign investor in US government bonds after Japan, according to Treasury International Capital. However, China’s holding in US government securities has contracted by nearly $100 billion so…
