Chinese investors sold a record amount of US securities, including Treasury bonds, agency, corporate and other equities, in May 2024. According to the most recent data from the US Treasury Department released on Thursday, funds from the Asian nation unloaded a net $42.6 billion worth of long-term securities. In the first five months of the year, total sales reached $79.7 billion, marking an all-time high for the January-May period.
Reasons behind sales
Billy Leung, investment strategist at Global X Management Co. in Sydney, said Chinese investors may have sold US stocks to reduce risk due to the uncertainty of the upcoming US presidential election. He also suggested that there may be political influence to reduce dollar holdings.
Sales Composition
More than half of the sales were Treasuries, followed by government debt and equities. On 25 April, the yield on the benchmark ten-year Treasury bond rose to…
