China: Report buying of US debt might stop is 'fake news'

BEIJING — China's foreign exchange regulator on Thursday challenged a report it might slow or stop purchases of U.S. Treasury debt due to trade tensions with Washington as "fake news."

The State Administration of Foreign Exchange, one of the biggest holders of Treasuries, said it is a "responsible investor" for both the reserves and "participating markets."

Bloomberg, citing unidentified sources, reported Chinese authorities were considering slowing or halting purchases of Treasuries and said they might cite trade tensions as a reason. That prompted a sell-off of U.S. government debt in global markets.

"The news may quote the wrong information source, or it may be fake news," SAFE said on its website.

Beijing keeps a big share of its $3.1 trillion in foreign currency reserves in Treasury debt, which is considered safe and easy to trade. The level rises and falls each month as Chinese currency regulators buy and sell dollars to maintain the exchange of Beijing's tightly controlled yuan.

China owned at least $1.2 trillion of Treasury debt as of October, according to U.S. government data. Beijing is believed to hold additional assets through intermediaries in Switzerland other financial centers.

People also read these

Global markets mixed after Wall Street loss

Dec 23, 2016

Asian markets are mostly lower while Europe has gained in early trading ahead of the Christmas...

Stocks drop but pound recovers as UK lays out Brexit plan

Jan 17, 2017

Global stocks fell Tuesday but the pound rebounded as British Prime Minister Theresa May says her...

What Trump's trade and geopolitical moves mean for China

Jan 24, 2017

With his rejection of an Asian trade pact, U.S. President Donald Trump has started tackling policy...

EU asks China to open markets following free trade support

Jan 25, 2017

The European Union ambassador to China has welcomed its endorsement of free trade in the face of...

Asian stocks decline after Wall Street falls

Feb 7, 2017

Asian stocks are lower after Wall Street declined and oil rebounded

AseanCoverage is a next-gen news site focusing exclusively on online news from South East Asia.

Contact us: sales[at]aseancoverage.com