The Chinese mainland has again become the largest foreign holder of US Treasury securities, pushing Japan down to second place, according to data revealed by the US Department of the Treasury on Tuesday.
Experts told the Global Times on Wednesday that the situation is a result of improved capital flows and expectations of the yuan strengthening against the US dollar. They added that China might further pump up its holdings of US Treasuries if these trends persist.
The US Treasury data showed that in June, China bought $44.3 billion US Treasury securities, bringing its total holdings of US bonds, notes and bills to about $1.15 trillion in total.
The Chinese mainland has been increasing its holdings of US Treasuries for six consecutive months.
Japan, which replaced China as the US’ biggest Treasury securities holder last October, sold about $20 billion of Treasuries in June. Its current holdings of US Treasuries amount to about $1.09 trillion.
The US Treasury data also showed that Hong Kong is currently the ninth biggest holder of US Treasuries, with its holdings reaching approximately $203 billion.