China Reduced Its Holdings Of US Debt For Five Consecutive Months; Net Reduction In March Was $9.2 Billion

U.S.A finance The "Monthly International capital The "liquidity report" shows that in March 2011, China's net reduction of US $9.2 billion in US treasury bonds was the fifth consecutive month of net reduction since November last year. As of the end of March, China held US $1.1449 trillion national debt , continue to occupy the largest holder position in the world.

Since June 2010, when it reached US $1.1112 trillion, China's holdings of US Treasuries have stabilized at more than US $1 trillion for 10 consecutive months. However, since October last year, when China increased its holdings by US $23.4 billion to US $117.53 trillion, it has implemented monthly net reduction operations of US $11.2 billion, US $4 billion, US $5.4 billion, US $0.8 billion and US $9.2 billion respectively in the past five months.

Bu Ruobo, a professor of the China School of Economics and Management at the Central University of Finance and Economics, pointed out that the second round of quantitative easing program implemented by the Federal Reserve last November has raised investors' doubts about the security of U.S. dollar assets at an unprecedented level, leading more and more U.S. Treasury investors to choose to transfer funds to other investment fields in a limited way.

Among other major holders of US Treasuries, Japan and the UK continued to increase their holdings. The net increase in holdings in March reached US $17.6 billion and US $29.7 billion respectively, continuing to rank second and third on the list of global holders of US Treasuries.