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/CHINA: Amid Tension, China Likely To Cut US Tsy Holdings (Global Times)

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Just to recap an article run by the Global Times during late New York hours:

  • China may gradually reduce its holdings of US Treasury bonds to about $800 billion from the current level of more than $1 trillion, as the ballooning US federal deficit increases default risks and the Trump administration continues its blistering attack on China, experts said.
  • China, the world's second-largest holder of US debts, has been systematically but determinedly trimming its holdings of US bonds in recent years. In the first six months of this year, China dumped about $106 billion worth of US Treasury bonds. On a yearly basis, China's holdings of US bonds dropped by about 3.4 percent as of the end of June.
  • "China will gradually decrease its holdings of US debt to about $800billion under normal circumstances. But of course, China might sell all of its US bonds in an extreme case, like a military conflict," Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Thursday.
  • Click here for report.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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