Experts interpret reduction of U.S. Treasury bonds: 4.4 billion dollars will make a lot of waves

Xinhua Beijing, June 16 (Xinhua "Xinhua Point of view" reporter) The U.S. Treasury on June 15, the data show that, as at the end of April, China held 763.5 billion U.S. dollars in US Treasuries, compared with the March reduction of 4.4 billion U.S. dollars, for the first time since February 2008 reduction. Of China's huge foreign-exchange reserves, just 4.4 billion dollars is drop. However, the move has aroused widespread concern. Why has China been reducing its holdings of U.S. Treasury bonds before? What does this mean?　　"Xinhua Viewpoint" Reporter interviewed the relevant experts at home and abroad. Reduction does not represent a trend "at present our country is still holding the most U.S. Treasury bonds outside the United States, the reduction of $4.4 billion trillion of 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. "This form, published by the US Treasury as the main foreign holder of fiscal securities, lists the amount of US Treasuries held since March 2008," he said.　　Data show that from the end of March 2008 to the end of March 2009, China accumulated more than 165.9 billion U.S. dollars in US Treasuries. Reuters analyst Bi Xiaowen that from China's monthly net share of 10.327 billion U.S. dollars in long-term Treasury bonds, the reduction is only to reduce short-term treasury bonds, or some of the natural maturity of the U.S. Treasury bonds, "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, "as a rational choice, China will not do so, whether or not to reduce or overweight, are financial operations in financial markets."　　"Song, a Treasury trader at the Chicago Board of Trade, believes that the 4.4 billion reduction should be an abrupt act, not a long-term one, and that in the long run, China should at least not reduce its holdings too much, because it is still a safer means of hedging." Yang, director of the Financial Information Center at Renmin University of China, said there was no possibility of a massive sell-off of US Treasuries in the market as concerns began to move towards a reduction in US Treasuries. Because there is no one to the world. Who's going to buy this big plate? There's a price problem here.　　Zhang Bin, deputy director of the International Financial Department of the Institute of Social Sciences, believes that even if China continues to reduce its holdings of US Treasuries in the future, it may not have a detrimental effect on both sides. "First of all, from their own interests, China will choose the right time and means to adjust the asset structure of foreign exchange reserves, to minimize the impact of the financial markets and the real economy," Zhang said, "Second, the reduction of U.S. Treasury bonds for the United States is to reduce foreign debt, in the medium and long term This reduces the external dependence of the United States and the imbalance in the domestic economy. As long as China and the United States handle the matter in a co-operative manner, I believe this will not have a significant adverse impact on bilateral economic and trade relations and diplomatic relations. "WhySelect 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. Zhang Bin said that U.S. Treasury bonds in China's foreign exchange reserve assets in the high proportion, once the dollar depreciation, the real purchasing power of China's foreign exchange reserves will suffer huge losses. In order to avoid this kind of risk, insisting on the diversification management of foreign exchange reserve assets and reducing the proportion of US Treasuries in China's foreign exchange reserve assets should be the important work content of the current foreign exchange reserve assets management, "I think this is the original intention of China's adjustment."　　"He believes that since the Fed adopted quantitative easing, the market has generally expected the dollar to depreciate in the medium to long term, and long-term investors in the market have also adjusted their portfolios." "China is selling some US Treasuries at this time, fully in line with the general business practices of market investors, and the smaller size of the adjustment is not enough to cause too much shock to the market."　　"he said. Yang said: "4.4 billion dollars is a small number, I will be more of this reduction as a signal."　　China's small reduction of U.S. Treasury bonds to the international market to send a signal, that is, not to gamble with China's one-way overweight or reduction, and the renminbi one-way appreciation or depreciation. Increased holdings of U.S. Treasury bonds and asset diversification China is the largest overseas holder of US Treasuries. "There is no contradiction between the diversification of foreign exchange reserves and the increase in holdings of US Treasuries," Wang Zihong. Wang Zihong said: "China's large holdings of foreign exchange reserves cannot be changed in the short term, and the status of dollar assets cannot be changed in the short term." In view of the liquidity of assets and the cost of circulation, the dollar is still a relatively low cost of assets, there is no obvious advantage, can completely replace the U.S. Treasury bonds investment channels.　　Since 2001, as China's foreign trade has been growing and foreign exchange reserves have increased, the country's foreign exchange reserves have reached 1.9537 trillion U.S. dollars at the end of the 1 quarter of 2009. The chief researcher of the People's Bank of China's Institute of Finance, Zouping, said that a country's foreign exchange reserves are not the more the better, should be set up with the international balance of payments as the goal of the reserve System; under the paper currency standard system, excessive foreign exchange reserves are faced with the risk of the devaluation of　　The principle of risk decentralization should be followed. Zhang bin said that from the perspective of risk aversion, ChinaHolding US Treasuries should be more flexible.　　But how flexible it is depends not only on willingness, but also on the design of the management system of foreign exchange reserves and the changes in financial and real economic situations at home and abroad. He said that under a given reserve asset scale, it could reduce the losses caused by the depreciation of the dollar by buying some strategic reserves, investing in energy countries, mining countries, buying stakes in some U.S. financial institutions, and corporate bonds, "at the same time, if China can transform itself through its domestic economic structure, Reducing the accumulation of trade surpluses and the overall size of foreign exchange reserves will be of greater help to national welfare promotion. "(Journalist: Sun Yu, Wang, Shuhong, hanbing, Han Wanning, Wang)