Data Show That In May, China Reduced US $300 Million In US Treasury Bonds.

"We hope that the US government and Congress will take effective responsibility in their own and global interests. policy Measures should be taken to properly handle the debt problem, ensure the safety of US Treasury bonds investment and the normal operation of the market, safeguard global investor confidence and achieve a strong, sustainable and balanced growth in G20 consensus. "

This is yesterday's governor Zhou Xiaochuan of the people's Bank of China on August 2nd. U.S.A The Senate and house of Representatives passed the "budget control act of 2011" to answer questions from reporters.

Zhou Xiaochuan said that US Treasuries are the most important investment and trading products in the global bond market. The volatility and uncertainty of the US Treasury bond market will affect the stability of the international monetary and financial system and drag the global economic recovery.

The US Treasurys have been in turmoil for a long time. Since the US government reached the legal limit of $14 trillion and 294 billion in May 16th, the risk of default has increased. The US President Obama and the members of the two parties have been unable to reach a compromise on raising the debt ceiling. Previously, US Treasuries have long been considered "safe haven".

Obama did not make a statement until noon on August 2nd, and signed a bill just passed by the US Senate to raise the debt ceiling and reduce the budget deficit. At this point, there is only a few hours from the last minute of the default period.

In the short term, the increase in the debt ceiling by the bill will enable the US government to support the general election after November 2012. It also plans to cut spending by US $2 trillion and 100 billion over the next 10 years. This round of US debt crisis is also coming to an end. International rating agencies Moodie and Fitch have also confirmed the sovereign debt rating of the US AAA.

international currency Lagarde, President of IMF, said the agreement reduced the uncertainty of the market.

"We note that in August 2nd, the house of Representatives passed the 2011 budget control bill and made progress in raising the debt ceiling and formulating a long-term deficit reduction plan." Zhou Xiaochuan said, "we welcome this. We will further study and maintain close attention to the specific contents and phased implementation of the bill.

Zhou Xiaochuan also said that China's foreign exchange reserve management will continue to adhere to the principle of diversified investment, strengthen risk management, and minimize the negative impact of international financial market volatility on me.

By the end of 6 2011, China's foreign exchange reserves were approaching us $3 trillion and 200 billion, reaching US $31975 billion, up 30% over the same period last year. At present, China is the largest holder of US Treasury bonds. As at the end of 5 2011, China held about 11598 billion US Treasury bonds.

US Treasury data also showed that China held us $11601 billion at the end of 12 last year. In other words, in the first half of this year, foreign exchange reserves rose sharply, but in the first 5 months of this year, China did not increase its holdings of US Treasury bonds, but instead reduced US $300 million in US Treasury bonds.

Analysts believe that since this year, China's use of new foreign exchange reserves to buy less U.S. assets, may be to invest more reserves in eurozone bonds.

In fact, in late July, Zhou Xiaochuan once said that China, as a responsible investor in the international financial market, has always maintained confidence in the euro zone and the euro. "In the past, now and in the future, European financial markets are one of China's major investment markets."

In addition, Zhou Xiaochuan also said yesterday that from the domestic perspective, we will take effective measures to maintain steady and rapid economic growth and safeguard China's economic and financial security.