China trims holdings of US Treasuries to US$757 billion

China reduced its holdings of US Treasuries by US$8.2 billion (HK$63.96 billion) in April, bringing its total to US$757 billion — the lowest level since 2009, according to US Treasury Department data. 

The move marked the first time in five months that foreign investors trimmed their exposure to US government debt.

Overall foreign holdings fell from a record US$9.05 trillion in March to US$9.01 trillion at the end of April, a decline of US$36.1 billion.

The drop followed US President Donald Trump’s April 2 announcement of reciprocal tariffs, which briefly pushed Treasury yields higher. At the time, market speculation suggested some foreign governments were reacting to the tariffs by reducing their US debt holdings. Trump later postponed the planned tariff increases above 10 percent for 90 days, a move widely interpreted as an effort to ease tensions with foreign governments.

In April, among the top three foreign holders of US Treasuries — China, Japan and the United Kingdom — only China reduced its position. Japan raised its holdings by US$3.7 billion to US$1.13 trillion, while the United Kingdom increased its holdings by US$28.4 billion to US$807.7 billion.

Canada was the largest seller in the month, cutting its US Treasury holdings by US$57.8 billion to US$368.4 billion.

STAFF REPORTER