In a significant shift in its investment strategy, China has reduced its holdings of US Treasuries to the lowest level in over a decade. This move reflects a broader trend of diversifying its assets amid changing global economic conditions, as The source reports that many countries are reevaluating their reliance on US debt instruments.
China's Holdings of US Treasuries
As of November, China's holdings of US Treasuries stand at $682.6 billion, a decrease from $688.7 billion in October. This marks the lowest level since the global financial crisis, highlighting a strategic pivot away from US debt.
Strategic Shift in Investment
Analysts suggest that this reduction is part of China's ongoing efforts to mitigate risks associated with US financial instruments. Concurrently, the country is reportedly increasing its investments in:
- gold
- foreign stocks
aiming to bolster its financial stability and diversify its reserves.
Recently, China's economic landscape has faced significant challenges, with new loans declining sharply, raising concerns about deflation and economic vitality. For more details, see the full report on this issue here.
