Staff reporter and Bloomberg
China, the second-largest foreign investor in US Treasuries, cut its holdings for the seventh consecutive month in October to the lowest level since 2009.
The nation held around US$770 billion (HK$6 trillion) of US Treasuries in the month, down by US$8.5 billion month-on-month, official data shows.
But Japan, the largest foreign investor in the asset class, raised its holdings to US$1.1 trillion.
Earlier this week a former adviser to China’s central bank said the country should gradually reduce its holdings of treasuries and balance trade by boosting imports to control its exposure to US debt risk.
This came as Bloomberg reported that at least two state-backed Chinese insurers that lent to China Vanke (2202) agreed to give the developer breathing room on some of their private debt after they talked to the country’s top financial regulator.
The insurers decided to give up their right for an…
