BEIJING – China’s State Administration of Foreign Exchange denied on Thursday that the country may be slowing or halting purchases of United States government bonds.
It refuted reports in the international media on Wednesday, that said China considered US bonds non-lucrative and was thus looking to slow their purchases, as fake and possibly based on wrong information.
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 decentralized 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.