Why China's top management has been in a row for 7 months recently**U.S. TreasuriesMuch attention. First of all,GeopoliticsFactors are at the heart of this initiative. GlobalGeopoliticsThe situation changes rapidly, if heldU.S. TreasuriesToo much, in the event of an unexpected event, the United States is likely to default, resulting in China's holdingsU.S. TreasuriesThe value is gone. Secondly, AmericanFiscal deficitsProblems have also led to holdingU.S. TreasuriesThe risk rises. Due to the Federal Reserve's successive interest rate hikes, the United StatesFiscal deficitsIt has reached a level of severity and the potential risk is extremely high. China moderate**U.S. Treasuriesto better avoid risks. Third, China's need to optimize its investment structure is also one of the reasons for this move. Current InternationalFinanceThe pattern is different from what it used to be, and China needs to seek a new oneAsset allocation, can not put the entire investment inU.S. Treasuries, it is necessary to increase the allocation of new assets such as euros and ** to better hedge risks. To sum up, China's top management has been in a row for 7 months**U.S. TreasuriesThe main reason is to avoid risk and avoid being controlled by the United States.
China and Japan are the largest in the worldU.S. TreasuriesHolding countries, and in recent years two countries**U.S. TreasuriesThe pace is fairly consistent. China and Japan**U.S. TreasuriesIt is bound to affect the international capital marketU.S. Treasuriesconfidence, which to some extent leadsU.S. TreasuriesDepreciate. However, it should be noted that the consequences of this effect are limited to that. In fact, China and Japan holdU.S. TreasuriesThe number is not much. China holdsU.S. TreasuriesThe amount is only in the United StatesTreasury bonds24%, while Japan accounts for a slightly higher proportion of 32%。Even if the two countries are soldU.S. TreasuriesAll things considered, the overall impact on the United States is also limited. In addition, the largest holdingsU.S. TreasuriesIn fact, the United States itself accounts for more than 70%. theseU.S. TreasuriesIt is held by households, individuals, corporations and ** in the United States, such as Vanguard Navigator Investments, Fidelity Asset Management and BlackRock**, which are the three largest asset managers in the United StatesU.S. TreasuriesThe scale is huge, and the number exceeds the total holdings of most overseas countries. Therefore, despite the fact that China continues to **U.S. Treasuries, the impact on the United States is limited.
However, this does not mean that the United States can rest easy. The United States itself is able to digest a large amountU.S. Treasuries, but this is actually a bet on the fortunes of the country. U.S. TreasuriesofInterestRelatively high, if the United StatesEconomic growthThe speed is not enough to payInterest, that AmericaEconomyThere is a risk of thunderstorms. LikeEvergrandeSimilarly, a company's revenue cannot cover its debtInterest, which eventually led to the rupture of the capital chain and bankruptcy. Therefore, for the United States, once the countryEconomic growthStagnation,U.S. TreasuriesThis mine could have the potential to completely destroy the United States. Of course, the United States also has a powerful military and unlimited money-printing capabilities, and if the situation deteriorates, its development direction is still unknown.
Continuous from the top**U.S. TreasuriesIn this move, we can see that China is the best for the worldFinanceThe ability to control the risk of the marketAsset allocationEnhancement of capabilities. China is the second largest in the worldEconomybody, must have a more flexibleAsset allocationstrategy in order to better respond to the worldEconomyVariations andGeopoliticsRisk. **U.S. TreasuriesIt can not only reduce over-dependence on the United States, but also optimize the investment structure and seek more diversified investment opportunities.
In addition, I personally believe that in international affairs, politics andEconomyClosely related. High-rise continuous**U.S. TreasuriesThe initiative is not onlyEconomyThe level of decision-making is even more rightGeopoliticsMechanisms to respond to risks and international situations. As the global situation changes, countries are inFinanceThe performance of the market andAsset allocationwill be affected. Therefore, not only China, but also other countries should remain vigilant and adjust their own in due courseAsset allocationstrategy to deal with the globalEconomyChanging patterns.
In short, high-level continuous**U.S. TreasuriesThe reasons behind the move are manifold, including circumventionGeopoliticsRisk, dealing with the United StatesFiscal deficitsproblems and optimization of the investment structure. Despite **U.S. TreasuriesThe impact on the United States is limited, but the United StatesEconomyThere is still a risk of thunderstorms. Therefore, for China and other countries, it is necessary to maintain a rational allocation of assets and reduce over-dependence on a certain assetEconomyThe key to stability and risk response.