According to U.S. Treasury Department, China is still the biggest holder of the U.S. debts. It increased holdings of U.S. Treasury bonds of $ 5.2 billion in May, pushing the gross holding to 1.17 trillion U.S. dollars. Its data show that China had increased 25.6 billion U.S. dollars for two straight months.
Risk aversion in the market and the upward trend of U.S. dollar make investors choose it.
Mei Xinyu, a researcher with Department of Commerce, said China maintained surplus in the international balance of payments, so a big proportion of the increased foreign exchange income will be turned into foreign exchange reserves.
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