China: Reports that it will stop buying US Treasury debt ‘fake news’

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Treasury Secretary Steven Mnuchin, right, and his wife Louise Linton, hold up a sheet of new $1 bills, the first currency notes bearing his and U.S. Treasurer Jovita Carranza's signatures, Wednesday, Nov. 15, 2017,Jacquelyn Martin/AP

  • Bloomberg reported that Chinese authorities were
    considering slowing or stopping the purchase of US Treasury
    debt, but China shot it down as “fake news.”
  • Beijing keeps a big share of its $3.1 trillion in
    foreign currency reserves in US Treasury debt, which is
    considered safe and easy to trade.

BEIJING (AP) — 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.



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