China sheds US treasuries holdings in September

A Chinese clerk counts US dollar banknotes over yuan notes at a bank in Huaibei, East China's Anhui province, Jan 22, 2015. [Photo/IC]

WASHINGTON - China's holdings of US Treasury securities dropped for the first time in eight months in September, but remained the largest holder of US treasuries.

China cut its US treasuries holdings by $19.7 billion in September, with the total holdings down to $1.18 trillion, the latest data from the US Treasury Department showed on Wednesday.

Japan also reduced its US treasuries holdings by $5.7 billion to $1.096 trillion in the month and remained the second largest US treasuries holder.

By the end of September, overall foreign holdings of US Treasury securities rose to $6.3235 trillion from August's $6.2698 trillion.

As Chinese economy is gaining steady growth momentum, the cross-border capital flows in China remain stable in the short term, which has supported the steady increases in the country's foreign exchange reserves.

By the end of October, China's forex reserves rose $700 million to $3.1 trillion, rising for nine consecutive months.