Experts say China's increased holdings of U.S. Treasuries are no surprise that they will continue to buy

"International Herald Leader" reporter Zhang Haowen from Beijing "passive and helpless", "realistic and helpless", for China to increase holdings of U.S. Treasury bonds, many experts have expressed such views.　　July 16, the U.S. Treasury released the international Capital Flow report, as at the end of May, China held US Treasuries for 801.5 billion U.S. dollars, compared with the end of April data of 763.5 billion U.S. dollars, an increase of 38 billion U.S. dollars, is the largest one-month increase since last November.　　China's attitude toward US Treasuries appears to be a bit of a surprise, after reducing its $4.4 billion trillion in April to a hefty increase in holdings. Helpless choice from last October to this March, China's monthly increase in U.S. Treasury bonds fluctuated a lot, the highest of which was last October, at $65.9 billion trillion, the lowest of this year's February, to 4.6 billion dollars. The most interesting is the April this year, suddenly appeared a small reduction of 4.4 billion U.S. dollars. At that time caused various speculation.　　And many experts believe that the reduction "does not necessarily represent the future trend."　　The May increase seemed to confirm the analysis. "US Treasuries may not be the best investment, but they are the real choice." The size of China's huge foreign exchange reserves, for the time being, has no better investment channel to accommodate such a large amount of money.　　Guo Tianyong, director of the Central Banking Research Center, gave an analysis of the International Herald Herald. Dr Hu Zhihao, of the Institute of Finance at the Chinese Academy of Social Sciences, also believes that China's foreign exchange reserves are already over 2 trillion, and that buying US Treasuries is both inevitable and important. "The function of foreign exchange reserves is to protect the security and liquidity of the external financial system, the liquidity of US Treasuries is very good and relatively safe."　　"Hu Zhihao said. Guo Tianyong that the May increase in the amount of large, and China's recent period of foreign exchange reserve growth. China's new foreign exchange reserves need to be invested.　　"This is also a realistic and helpless choice." will continue to buy "as long as China's foreign exchange Management system is not adjusted, it is difficult to change the reality of buying Treasury bonds as the main way to invest in the foreign reserves."　　"Hu Zhihao analysis, as the renminbi capital projects gradually liberalized, foreign exchange by the state is mainly held slowly into residents and enterprises hold, foreign exchange reserves mainly investment in U.S. Treasury bonds will change the situation."　　For example, Japan's foreign exchange reserves are much higher than China, which has reached $6 trillion trillion, with official foreign exchange reserves of only $ more than 900 billion trillion and other foreign currencies scattered in the hands of residents.　　Hu Zhihao that the current economic situation is not clear, investment in U.S. Treasury bonds is still a relatively safe choice. "China will continue to buy US Treasuries before it can find better ways to invest in the bulk of its investments." Guo Tianyong said, "It is normal that in the hands of a large number of dollars in the case, the purchase of U.S. Treasuries is better than holding cash, at least the proceeds." "The increase in the proportion of short-term government bonds, even if the purchase of US Treasuries will be long-term behavior, structural adjustment is inevitable."　　Hu Zhihao that China's May holdings of U.S. Treasury bonds will be fine-tuned, that is, to increase the proportion of short-term debt. The United States TreasuryThe report confirms his suspicions.　　The Wall Street Journal reported that 34 billion of the $38 billion trillion in U.S. Treasuries that China increased in May were short-term treasuries. In this regard, the Wall Street Journal analysis that the change occurred in the dollar against the euro in May, a 7.2% decline in the case.　　The market is concerned that the US government's aggressive fiscal and monetary policies could lead to a sharp devaluation of the dollar, which would hurt the value of the country's holdings of US Treasuries.　　The Wall Street Journal also quoted analysts as saying it was a preventative measure to facilitate the transfer of funds when needed. "China and foreign countries need a transitional process to diversify their investments and reduce their dollar assets." In addition, the increase in the proportion of short-term government bonds can make the operation more convenient.　　"Hu Zhihao said.　　Guo Tianyong also believes that short-term debt is more flexible, and that once China finds better investment channels, it can pull out in time. China's monthly increase in the amount of U.S. Treasury bonds hold the limit of 65.9 billion US $684.1 billion $ November 2008 29.1 billion USD 713.2 billion USD December 2008 14.2 billion USD 727.4 billion USD January 2009 12.2 billion USD 739 600 million dollars February 2009 4.6 billion US $744.2 billion $ March 2009 23.7 billion USD 767.9 billion USD April 2009-4.4 billion USD 763.5 billion USD May 2009 38 billion USD 801.5 billion USD (data source: US Treasury website)