China cuts US Treasury holdings for third straight month

China trimmed its holdings of US Treasuries by US$900 million (HK$7.02 billion) in May, bringing its total to US$756.3 billion, marking the third consecutive month of declines, according to data from the US Treasury Department. 

Despite the reduction, China remained the third-largest foreign holder of US government debt.

Japan, the largest holder, added US$500 million in the same period, with total holdings reaching US$1.14 trillion. 

The UK remained in second place, increasing its holdings by US$1.7 billion to US$809.4 billion.

Canada posted the largest increase among foreign holders in May, boosting its US Treasury holdings by US$61.7 billion to US$430 billion.

Overall, foreign holdings of US Treasuries rose by US$32.4 billion in May to US$9.045 trillion, remaining above the US$9 trillion threshold for a third straight month.

STAFF REPORTER