China Cuts U.S. Debt Holdings

Cut holdings by $32 billion in Dec.

As its own huge reserves fell in the fourth quarter, China cut its holdings of U.S. debt by nearly $32 billion in December, data showed on Feb. 15.

The largest foreign investor in U.S. debt, China's holdings of Treasury bonds fell to $1,100.7 billion last month, down from $1,132.6 billion in November.

In January Beijing reported its total foreign exchange reserves, including the U.S. debt, fell to $3.18 trillion at the end of December from a peak of $3.27 trillion in October, as its trade surplus began to narrow and as capital moved out of the country as speculation eased that the yuan would continue to appreciate against the dollar.

Copyright Agence France-Presse, 2012

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