China Has Increased Its Holdings Of US Debt &Nbsp For Two Consecutive Months, And Its Holdings Have Broken $900 Billion Again.

Data released by the US Treasury on 15 may show that the total amount of treasury bonds held by China in April reached US $900 billion 200 million, an increase of US $5 billion from last month. This is the second consecutive month that China has increased its holdings of US Treasury bonds. It is also the first time China has exceeded US $900 billion since November last year.

From the data, in the year since April 2009, China has held five reduction and six holdings of US Treasury bonds, and once again. In August 2009, China reduced its US $3 billion 400 million Treasuries for the first time in a year. Since then, from November 2009 to February 2010, China has reduced its holdings of US Treasury bonds for 4 consecutive months, especially in December 2009, with the largest reduction of US $34 billion 200 million, keeping the holdings for more than 900 billion US dollars for the first time to below US $900 billion for half a year.

Although China's holdings of US Treasury bonds have increased or decreased, its total holdings are on the rise. Within one year, China's holdings of US Treasury bonds increased by US $136 billion 700 million, and it has always been the largest holder of US Treasury bonds.

Data also showed that, as of the end of April this year, the total amount of treasury bonds held by foreign creditors reached US $3 trillion and 960 billion, an increase of 1.87% from last month. Among the second largest creditor countries, Japan also increased its holdings of US Treasury bonds in April. Its holdings rose from $784 billion 900 million in March to $795 billion 500 million, while the third largest creditor states held a significant increase of US $42 billion 200 million in US Treasury bonds to US $321 billion 200 million.

Some analysts believe that in recent months, such as the intensification of the European debt crisis, investors have turned to safer Treasuries and bills as hedge investments.