Experts interpret how China's reduction will stir up big waves

In January 2009, China's holdings of US Treasuries amounted to $736.9 billion trillion, ranking first in the total holdings of U.S. Treasuries. Of China's huge foreign-exchange reserves, just 4.4 billion dollars is drop. However, the reduction of the lifting has aroused widespread concern. Why has China been reducing its holdings of U.S. Treasury bonds before?　　What does this mean? Reduction does not represent the trend "at present our country is still holding the most U.S. Treasury bonds outside the United States, the reduction of a few 4.4 billion U.S. Treasury bonds will not affect the future trend of our further increase in US Treasuries." "It's in my interest to hold a certain amount of US Treasuries," said Zhaoquanho, director of finance research at the Treasury Department. Data from the US Treasury show that in the end of March 2008 to the end of March 2009, our country accumulated more than $165.9 billion trillion of U.S. Treasury debt. Reuters analyst Bi Xiaowen that the reduction is only to reduce short-term government debt, or some of the U.S. Treasury bonds naturally due, "is not a big, initiative to reduce the dollar and the U.S. Treasury market has limited impact." Wang Zihong, director of the Economic unit of the American Institute of Social Sciences, said the market's speculation that China could dump US Treasuries on a large scale is untenable, and that "both the reduction and the overweight are financial operations in financial markets."　　"Song, a Treasury trader at the Chicago Board of Trade, believes that a 4.4 billion reduction should be a temporary act, not a long-term one." Yang, director of the Financial Information Center at Renmin University, said it was unlikely that China's massive sell-off of U.S. Treasuries would occur.　　Zhang Bin, deputy director of the international Financial Room at the Institute of Social Sciences, said that even if China's future continued to reduce its holdings of US Treasuries, it would not necessarily adversely affect both sides.　　Why choose this time to reduce? "I think the reduction of US Treasuries at this time is intended to be a cash-for."　　"Zhaoquanho said.　　The international financial community had previously argued that the BRICS would be big buyers of the IMF's first bonds – China has said it will buy 50 billion of billions of dollars in IMF bonds, and Russia and Brazil are prepared to buy 10 billion of billions of dollars of bonds respectively.　　Yang Landolf, analyst at Global perspective, said the BRIC countries ' increased investment in the IMF has "cleared the way" for it to increase its voice and influence in the International Monetary Fund and the World Bank.　　Some domestic scholars are happy to see this reduction as a response to the continued downward pressure on the dollar, by the International Monetary Fund to issue bonds to make an active adjustment.　　Yang said: "4.4 billion dollars is a small number, China's modest reduction of U.S. Treasury bonds to the international market to send a signal, that is, not to bet on China's one-way overweight or reduction, as well as a one-way revaluation or devaluation of the renminbi." According to "Xinhua Viewpoint"