China FX regulator denies considering halting U.S. Treasuries purchases
On Thursday China's foreign exchange regulator denied reports claiming China is considering slowing or halting purchases of U.S. Treasuries.
China is the world's biggest foreign holder of U.S. Treasuries. [Photo: VCG]
The State Administration of Foreign Exchange (SAFW) said the report was incorrect.
"China's foreign exchange reserves have always been management in accordance with the principle of diversification so as to ensure the overall safety of foreign exchange assets and maintain and increase their value. Like other investments, the purchase of U.S. treasury bonds is a market activity that is managed professionally according to market conditions and investment needs," the regulator said in a statement published on its website.
According to data from the U.S. Treasury Department, China is the biggest foreign holder of U.S. government debt. China holds about 1.19 trillion U.S. dollars in Treasuries as of October 2017.