Posted 10/20/2023, 1:05:00 AM
China Cuts Holdings of US Debt for 5 Months Straight Amid Liquidity and Safety Worries
- China has cut its holdings of US debt for 5 straight months amid worries over liquidity and safety.
- Experts say the cuts are due to poor performance of US bonds and China's efforts to diversify reserves.
- There is a supply-demand mismatch with US debt, making the outlook more concerning.
- China is expected to further diversify assets to improve safety and profitability.
- De-dollarization trends and China-US relations also contribute to reduced Chinese holdings of US debt.
