China 's holdings of US debt are market behavior

Recently, China's six consecutive months of holdings of US Treasury bonds caused concern. Following a continuous reduction in 2016, the Chinese government has returned to America's largest "creditor" position. In this regard, the expert analysis, holdings or holdings of US Treasury bonds are normal investment behavior, since this year's increase in China's balance of payments surplus and foreign reserves to increase the background of reasonable changes, is to expand investment income options, the future Increasing US Treasury bonds will continue to be an important operation of China's foreign exchange reserve management.

Increase or decrease are normal investment

US Treasury Department recently released data show that China continued to increase holdings of $ 19.5 billion in US Treasury bonds in July, holding the scale increased to 1.166 trillion US dollars. This is China's sixth consecutive month holdings of US Treasury bonds.

In June this year, China held the size of US Treasury bonds over Japan, once again become the largest US creditor. At present, China continues to sit tight in the United States the largest overseas "creditors" position.

According to data released by the China Central Bank, China's foreign exchange reserves in August to 3.092 trillion US dollars, China's foreign exchange reserves for the first time in three years to seven consecutive months of continuous growth. SAFE official said the rise in international financial asset prices is the main driving force for the growth of foreign exchange reserves in August. At present, US Treasury accounts for more than one-third of China's foreign exchange reserve assets.

But in 2016, China has also been a continuous reduction of US Treasury bonds, which makes in October that Japan became the largest US Treasury bonds holders.

For the holdings or holdings of US Treasury bonds, Chinese officials said the US debt market is an important market for China, both holdings and holdings are normal investment operations, China will be based on changes in the market dynamic optimization and Adjust the operation.

US debt scale in line with reality

For this year's continuous holdings, China International Economic Exchange Center researcher Zhang Yongjun analysis of this reporter, this year, China's exports are good, the status of the trade surplus continues to maintain, while foreign direct investment was a significant decline. From the perspective of foreign exchange receipts and payments, foreign exchange earnings are more, while foreign direct investment is significantly reduced, foreign exchange reserves increased. Therefore, the size of the investment in securities will be correspondingly increased, China's holdings of US Treasury bonds, it is reasonable changes in this context.

Compared with other securities assets, the US debt as a combination of security and benefits of better products, foreign exchange investment has become an important choice. "Investment securities to choose a stable income, liquidity is better market, while the US debt in this performance is good, at the same time with a large enough market size and high security." Zhang Yongjun said.