China is likely to continue to reduce the share of United States debt in its overall foreign exchange reserves as it ramps up efforts to diversify foreign asset portfolios to reduce risk exposure, experts said on Thursday.
Their comments came as data from the US Treasury Department showed that China, the second-biggest foreign holder of US Treasury securities, cut its holdings for three consecutive months to $767.4 billion as of the end of March, down $7.6 billion from a month ago.
Since April 2022, China’s holding of US Treasury bonds has remained below $1 trillion.
The recent cut marked a new low for China’s holdings of such assets not seen since March 2009. It comes as Japan, the largest foreign holder of US debt, increased its holdings by $19.9 billion in…
