China trimmed its holdings of US Treasury bonds in November, despite a strong buying surge by Britain and Japan, the other two major holders of the US securities.
China reduced its holdings by $9.3 billion dollars, from $798.9 billion in October to $789.6 billion by 30th November.
Overall foreign purchases of long term securities rose to $126.8 [...]
Former People’s Bank of China advisor Yu Yongding said he will warn the US not to be complacent about China’s purchasing of US Treasury bonds.
Yu, who will meet with US Treasury Secretary Timothy Geithner today, pointed to euro-denominated assets, as well as raw materials as alternative investments.
“I wish to tell the US government: ‘Don’t be [...]
US Treasury Secretary Timothy Geithner sought to reassure Beijing that the US is not borrowing irrresponsibly using China’s dollar reserves.
“No one is going to be more concerned about future deficits than we are,” Geithner said on his way to meetings in Beijing.
Premier Wen Jiabao expressed concern about the security of Chinese investments last March. China [...]
US President Barack Obama said China could have “absolute confidence” in the US economy after Chinese government officials questioned the safety of their investments in the US.
“Not just the Chinese government, but every investor can have absolute confidence in the soundness of investments in the United States,” Obama said on Sunday.
Obama was responding to pointed [...]
US Secretary of State Hillary Clinton said Washington and Beijing would work together “to help lead the world recovery” as her first visit to China in her new political capacity came to a close. The two nations agreed to establish a high-level dialogue focusing on the global financial crisis, climate change and security issues. Clinton, [...]
Luo Ping, a director-general at the China Banking Regulatory Commission (CBRC), said Beijing will continue to buy US Treasury bonds even though it knows the dollar will depreciate because such investments remain its “only option” in a perilous world. Speaking at the Global Association of Risk Management’s 10th annual risk management convention in New York, [...]
Chinese economists say US Treasury bonds are still the best way for China to invest its US$1.9 trillion foreign exchange reserves. This week China replaced Japan as the top holder of US Treasury debt, with holdings amounting to US$585 billion. Dong Yuping, senior economist at the Institute of Finance and Banking, said that, despite the [...]
