China resumes adding US Treasury bonds

China resumes adding US Treasury bonds

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China ended a six-month streak disposing of its US Treasury holdings in December, adding to its position for the first time since last May as the country's central bank seeks to manage capital flight, the Financial Times reports. The country, which ceded its status as the world's largest owner of haven Treasuries in October to Japan, added $9.1bn of US sovereign debt to its reserves in the final month of 2016, new data from the Treasury and Federal Reserve showed on Wednesday. China's foreign exchange reserves slipped below the $3tn level for the first time in January, a near six-year low as the central bank intervened in markets to stabilize the renminbi, separate data from the People's Bank of China showed last week. Despite the December growth, China's US Treasury holding fell $188bn in 2016.