China cuts holdings of US debt

A bank clark checks US dollars. [CFP]

China, the largest U.S. Treasury Securities holder, cut its holdings by US$36.5 billion to US$1.137 trillion in August from July's US$1.1735 trillion, ending the continuous net purchasing in the past four months, according to monthly data released Tuesday evening by the U.S. Department of the Treasury.

http://www.monclercoatsdowns.com/Analysts said the net sale was in response to S&P's downgrade of U.S. credit rating last month that set off a panic among the global market.

After the sale, China remains the largest holder of U.S. debt. Based on the August report, China owns 25 cents of every dollar that the U.S. borrowed from foreign governments.

Japan also retains its place as the second largest holder of U.S. debt with US$936.6 billion, up US$21.8 billion from July's US$914.8 billion.

The third largest creditor is the United Kingdom who net purchased US$44.7 billion in U.S. Treasuries in August, moving its holdings from July's US$352.5 billion to August's US$397.2 billion.

China's business press carried the story above on Wednesday.