China trimmed its holdings of US Treasuries in November to the lowest level since 2008, diverging from a global trend that saw total foreign ownership of the debt instruments hit a record high.<\/p>\n
Analysts say the prospect of a politicised Federal Reserve chairmanship under Donald Trump\u2019s presidency has deepened Beijing\u2019s concerns over its exposure to American debt, with more cuts expected.<\/p>\n
Beijing\u2019s stockpile fell to US$682.6 billion in November, down from US$688.7 billion in October, according to US Treasury Department data released on Thursday.<\/p>\n
That marks the lowest level since September 2008 and a nearly 10 per cent drop since last January, according to financial data provider Wind.<\/p>\n
Shao Yu, chief economist with the Sci-tech Innovation Management Research Centre at Fudan University, said Beijing appeared set to keep reducing its stockpile amid the growing risk of US debt unsustainability.<\/p>\n
\u201cThe massive accumulation of debt resembles a Ponzi scheme, where larger volumes of new debt are used to replace the old. China doesn\u2019t want to play this game any more,\u201d he said.<\/p>\n
China\u2019s reduction also comes amid heightened uncertainty over the future of the Federal Reserve, whose independence has come under threat during the Trump administration.<\/p>\n","protected":false},"excerpt":{"rendered":"China trimmed its holdings of US Treasuries in November to the lowest level since 2008, diverging from a…\n","protected":false},"author":2,"featured_media":412339,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[197801,550,15106,28,32029,144,12,101,2800,8193,3471,2938,197802,131702,2761,73433,33409],"class_list":["post-412338","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-american-debt","tag-beijing","tag-belgium","tag-business","tag-canadian","tag-china","tag-donald-trump","tag-economy","tag-federal-reserve","tag-fudan-university","tag-japan","tag-jerome-powell","tag-sci-tech-innovation-management-research-centre","tag-shao-yu","tag-uk","tag-us-treasuries","tag-wind"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/412338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=412338"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/412338\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/412339"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=412338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=412338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=412338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}