China denies slowing purchase of US bonds

Beijing, Jan 11: China's State Administration of Foreign Exchange denied on Thursday that the country may be slowing or halting purchases of US government bonds.

It refuted media reports and called them "fake and possibly based on wrong information", Efe news reported

The international media on Wednesday had said that China considered US bonds non-lucrative and was thus looking to slow their purchases.

Following the reports, US treasury bonds surged while the dollar went lower and the price of gold appreciated.

China has invested its foreign currency reserves in a diversified and decentralised manner in various different assets to ensure general safety and maintain and increase their value.

The regulator also defended the professional management and administration that China undertook with the investment of foreign reserves and said it was carried out in accordance with the market situation.

China's foreign exchange reserves, the world's largest, had climbed to $3.14 trillion in December 2017.

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