China's first reduction of 4.4 billion US Treasuries

Xinhua News agency China's continued move to increase its holdings of U.S. Treasuries has finally stopped. China held $763.5 billion trillion in U.S. Treasuries by the end of April, reducing its holdings by 4.4 billion US dollars in late March, its first reduction since February 2008, according to data released June 15 by the U.S. Treasury Department.　　But China remains the largest holder of US Treasuries.　　Reducing the embodiment of cautious psychological analysts believe that the reduction itself reflects the devaluation of the dollar in the context of the Government or institutions to hold a large amount of U.S. Treasury debt cautious mentality. Becoming the biggest creditor of US Treasuries during the recession means there may be some extra risk. Since March this year, with the U.S. government in the long-term debt crisis, the United States through the implementation of quantitative easing monetary policy, the printing of the U.S. dollar in disguise, so that the current U.S. Treasury debt credit is subject to great market challenges.　　In the past one months, the dollar index has plunged more than 10%, and investors ' confidence in the dollar and dollar assets has been severely hit. America's stimulus package is sliding the dollar into a devalued channel. If the dollar is devalued, whether China's $1.95 trillion trillion foreign exchange reserves are mired in shrinkage has become a topic that the market cannot avoid. In response, Zheng, a financial scholar at the Chinese Academy of Social Sciences, has made a figurative analogy: when China holds $700 billion trillion in U.S. Treasuries, it can buy 700 billion hamburgers, but then if there is a serious inflation in the United States, hamburgers become 2 U.S. dollars, temporarily do not consider floating surplus or floating losses,　　Then China can only buy 350 billion hamburgers. Of the top 8 holders of 7 of the top 8 holders of U.S. Treasuries, 7 have reduced overall holdings of US Treasuries. Among them, Japan's small reduction of 800 million U.S. dollars, still 685.9 billion U.S. dollars continue to become the second largest holders of U.S. Treasuries, the Caribbean coast countries and oil exporters to reduce the 8.9 billion U.S. dollars and 2.5 billion U.S. dollars, continue to be ranked third and fourth place. Russia, which reduced its holdings of $1.4 billion trillion in April, ranked the country and organization in the US Treasury holdings, which dropped to sixth place before fifth. Britain continued to increase its holdings.