China's big increase in South Korean government bonds in first half

In the first half of this year, China's holdings of South Korean government bonds rose by 111% to 3.99 trillion won (about $3.4 billion), according to the latest figures from the South Korean Financial Supervision Institute.　　Christian Calori, a fixed-income strategist at Société Générale in Tokyo, said that at this rate, it is expected that by the end of this year, China may buy about 4 trillion South Korean national debt, which could lead to uneven supply and demand in South Korea and a sharp drop in yields.　　But other analysts believe that China's total holdings of 3.4 billion U.S. dollars in South Korean debt is only about 2.45 trillion of its foreign exchange reserves of 0.1%, and also far less than China's holdings of 20.1 billion U.S. dollars in Japanese government debt scale, so in the short term, will not have a big impact on the Korean government bond market. Earlier, in June this year, China reduced its holdings of $24 billion trillion in U.S. Treasuries to $843.7 billion trillion, according to data released by the US Treasury Department 16th.　　According to the Japanese finance ministry, China bought 456.4 billion yen (about $5.3 billion trillion) of Japanese government bonds in June for the 6th consecutive month. Besides China, Asian central banks, which account for 60% of the world's foreign exchange reserves, have recently cut US assets. According to statistics, South Korea, Malaysia and India have joined the reduction of U.S. Treasury bonds in the queue. Dollar assets in the IMF's official reserves fell to 61.5% from 62.2% in the fourth quarter of last year, the International Monetary Fund said on June 30.