China's November reduction of U.S. debt 11.2 billion U.S. dollars

Washington (reporter Gaochenwu) The United States Treasury announced the night before, November 2010 China's net reduction of US Treasuries 11.2 billion U.S. dollars, for the first time in 5 months to reduce.　　By the end of last November, China's holdings of US Treasuries remained at $895.6 billion trillion, the first of its major creditors. The previous 4 months, China has been increasing holdings of U.S. Treasuries, including the July increase of 3 billion U.S. dollars, August increase of 21.7 billion U.S. dollars, September overweight in the amount of 15.1 billion U.S. dollars, increased in October increased to 23.3 billion U.S. dollars.　　The report also shows that by the end of November 2010, the number of U.S. Treasury holdings in the second place is Japan, from October to 875 billion U.S. dollars to 877.2 billion U.S. dollars, increased by 2.2 billion U.S. dollars.　　China also sold 81.3 billion yen in November 2010, the 3rd time since last August and September, according to data released by the Ministry of Finance, Japan.　　At the same time, China bought 556 billion trillion South Korean debt in November.　　The analysis of the trend of diversification of the investment in the foreign reserves shows that China and foreign reserves are no longer "stick to the U.S. debt" signs, diversification of investment trends are gradually emerging.　　Tan Yaling, dean of China Foreign Exchange Investment Research Institute, pointed out that last November's reduction had some relationship with China's diversified external storage portfolio, but it was mainly related to the external environment at that time: the depreciation of the dollar in October, plus the end of the year to deal with the settlement, to reduce is reasonable. There is still no substitute for dollar assets in the short term. Experts say the dollar remains a major part of China's foreign exchange reserves in the short term. The change in U.S. exchange rates and Treasury yields will affect whether China is overweight or reducing US Treasuries and is not yet able to see long-term trends, says Lu, a senior economist at Societe Generale. Lu Commissar said that the U.S. economy is now generally present as a recovery posture, coupled with the free convertibility of the dollar, with the best liquidity and other factors, from the asset portfolio, the dollar assets still have no better alternatives.