Standard Chartered: China may be increasing US Treasury bond holdings

The Standard Chartered Bank's China research department said in its latest report released recently that China may still keep increasing its holdings of US treasury bonds, though in an unnoticeable way.

According to official data from the US Treasury Department, China cut its holdings of US Treasury bonds by $25 billion to $776 billion at the end of June, which was a sharp contrast to the fact that most foreign buyers raised their holdings during that month.
 
The US Treasury Department's information may be untrue and China's real holdings of US treasury bonds may be underestimated, says Standard Chartered Bank's report. China bought its US bonds through brokers, mainly from those in London, and these purchases were categorized as under the United Kingdom, not China, in the US Treasury Department's data. If the above-mentioned amount of holdings are included, China's total holdings of US securities is estimated to reach $1.6 trillion and its stakes in US Treasury bonds is estimated to top $970 billion.

China's foreign reserves only increased by $50 billion in June, indicating the Chinese government is continuing to collect its new and accumulated reserves, the report added.

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