China clarifies reports on possible slowing of US debt purchases

Xinhua
The report might have quoted the wrong source or just one piece of misinformation, according to a statement released by the State Administration of Foreign Exchange.
Xinhua

China's top forex regulator responded Thursday to reports that the country is considering slowing or halting the purchase of US Treasuries.

The report might have quoted the wrong source or just one piece of misinformation, according to a statement released by the State Administration of Foreign Exchange.

A foreign media outlet reported Wednesday that China, the biggest buyer of US sovereign bonds, is considering slowing down or even halting its purchases as US debt is becoming less attractive.

Prices of US Treasuries and the dollar fell, while gold rose shortly after the report.

China's forex reserves have been invested in a diverse and decentralized manner to keep assets safe and ensure they grow in value steadily, and like other investment moves, the purchase of US Treasuries is market-based behavior and is subject to professional management based on market conditions and investment targets, the statement said.

The Chinese forex managers are responsible investors whose investments have helped stabilize the international financial market and the value preservation and growth of China's forex reserves, the statement added.

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