Business
12:10, 11-Jan-2018
China denies it’s slowing or halting US bond purchases
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A report that China is considering slowing or halting US Treasury purchases is “fake news”, China's top forex regulator said on Thursday.
Bloomberg, citing “people familiar with the matter”, reported on Wednesday that officials reviewing China’s foreign-exchange holdings have recommended slowing or halting US bond purchases.
Prices of US Treasuries and the dollar fell, while gold rose shortly after the report.
The State Administration of Foreign Exchange (SAFE) said in an online statement that the report “could be based on wrong information or a piece of fake news.”
The statement added, “China's forex reserves have been invested in a diverse and decentralized manner to keep assets safe and ensure they grow in value steadily, and like other investment moves, the purchase of US Treasuries is market-based behavior and is subject to professional management based on market conditions and investment targets.
"The Chinese forex managers are responsible investors whose investments have helped stabilize the international financial market and the value preservation and growth of China's forex reserves.”