Following on from last months news item that China doesn’t trust the US Dollar, further evidence of the fact care of China Daily….
China has reduced it’s net holdings of US treasury debt by 3.1% to $776.4 billion during the month of June 2009. This is Chinas first reduction this year, but it’s the biggest percentage drop since 2000, and is another sign that China is getting nervous about holding so many US dollar denominated instruments.
It’s possible this was to help fund some of the many overseas asset purchases that they’ve been scooping up recently.
Note: China and Japan hold approx 45% of US treasury Securities, or close to $1.4 trillion between them. Source Wikipedia.