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China may ditch US Treasuries as decoupling risk looms: Global Times

Commonground

Senior Moderator
9/4/20
Excerpts:

China could gradually cut its holdings of US Treasury securities by about 20 per cent to US$800 billion, the state-backed Global Times reported on Friday, as Beijing continues to weigh options to insulate itself from tensions with Washington.
-snip-
Xi Junyang, a professor at the Shanghai University of Finance and Economics, was quoted as saying by the Global Times that China will “gradually decrease its holdings of US debt to about US$800 billion under normal circumstances”.

“But of course, China might sell all of its US bonds in an extreme case, like a military conflict,” he said.
-snip-
“In general, China’s holdings of US Treasuries are falling,” To said. “We believe the fall in China’s holding of US Treasuries is primarily due to the slower pace of foreign reserves accumulation and portfolio diversification.”

https://www.scmp.com/economy/china-...ch-us-treasuries-decoupling-risk-looms-global
 
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