China will continue to increase.........>

CHINA PRESS: China will continue to increase purchases of the U.S. treasury

securities at a modest pace given the rising bilateral trade surplus, the

slowing of Chinese overseas investment and expectations of U.S dollar

appreciation, the official People's Daily reported Monday. Currently, Chinese

investment in U.S Treasuries accounts for over one third of total Chinese

foreign exchange reserves assets after six consecutive months of growth in the

U.S treasury holdings, the report said.  This is an appropriate ratio, it added.

Increasing or reducing U.S treasury holdings is normal investment behavior based

on changes in Chinese international payments and foreign exchange reserves, the

report noted. (People's Daily)