1. China once again ** U.S. bonds, with its holdings falling to $769.6 billion and selling to $97.5 billion.
China recently made another big move on U.S. Treasuries, bringing its holdings down to $769.6 billion. According to the latest data released by the U.S. Treasury Department, China has accumulated $97.5 billion this year, and its debt holdings have hit a new low since 2009. It should be noted that this data is as of October, and due to the two-month delay in the US Treasury report, the actual ** scale may be much larger than the published data.
Prior to February, China had a seven-month sell-off, and in March, we increased our bond holdings. However, it should be understood that this does not necessarily mean that we are in the US bonds, in fact, it may be due to the suddenness of the US bonds, so that the total value of our US bonds holdings has increased more than the amount of the sale, thus showing an increase in the scale of bond holdings. The reason for this time was that there was a financial panic caused by the serial bankruptcy of regional banks in the United States at that time, which forced investors to ** US bonds, resulting in ** large US bonds ** in a short period of time**. Therefore, it is reasonable to infer that China has been ** US debt for the past 15 months. In addition, in the two months of last year, our holdings of U.S. debt increased by $1.8 billion and $2.2 billion, but these increases were very small and may have something to do with the fact that the U.S. debt was "small" at the time. Judging from this, when our holdings increased twice in the middle of last year, it is very likely that we were also selling US bonds.
Unlike China, Japan has shown hesitation in recent times. After the previous sell-off, Japan's debt holdings reached just over US$10 billion, recording US$1,098.2 billion. And last month, Japan's debt holdings just fell by more than 20 billion. Surprisingly, Japan has increased its debt holdings by another $11.8 billion this month. Does this mean that Japan regrets the last sell-off?
Since the beginning of this year, Japan's debt holdings have experienced many increases and decreases, and have been fluctuating with no obvious direction. For example, in March this year, Japan's bond holdings increased sharply, followed by a few months**, but in May there was an increase in holdings, followed by a sell-off for three consecutive months from June to August, and then a sharp increase in September. This back-and-forth sell-off is likely an indication of Japan's continued hesitation about U.S. Treasuries. On the one hand, it may be out of consideration that they do not want to offend the United StatesOn the other hand, due to the constant exchange rate of the yen, it has to fluctuate the US debt.
Compared to the volatile attitude of other countries, China's strategy for reducing its holdings of US Treasuries is very clear. Over the past 12 months, China has not only been selling off US bonds, but it has also been increasing its holdings**. China has seen ** as an important safe-haven asset to mitigate the risk of US Treasury holdings. Behind this decision may be given the high level of debt in the United States, continued monetary policy easing, and an uncertain global economic environment.
*As a safe-haven asset, it has the characteristics of value preservation and anti-inflation, and is widely recognized by investors. Unlike U.S. Treasuries, ** is not affected by a specific country or currency and has global liquidity. As a result, overweight** can help diversify risk, protect national wealth, and provide more options for Chinese investors.
In summary, China's persistence of U.S. debt is likely to be much longer than the published data suggests, and it could last for more than two years. At the same time, Japan's debt-holding stance has been volatile and hesitant. Regardless of how other countries operate, China insists on US debt and massively increases its holdings to ensure the security and stability of its national wealth.
In the current global economic situation, China's strategy is in line with its interests and the needs of risk management. By acting decisively, China will further enhance its financial stability and strength. As the world's largest economy, China plays an important role in global investment and financial markets. For individual investors, understanding the dynamics of global capital markets and the behavior of countries is essential to develop sound investment strategies and risk management.
Problems exist all the time, and investors need to pay close attention to the changes in various factors and adjust their portfolios in time to adapt to the changing market environment. Only by adhering to a prudent and diversified investment philosophy can we maintain stable returns and reduce risks in the changing investment world.