CHINA IS QUIETLY REDUCING U.S. TREASURY EXPOSURE

Reports suggest Chinese regulators have urged major financial institutions to limit exposure to U.S. government bonds, citing potential volatility risks for bank portfolios.

China’s reported U.S. Treasury holdings are now around $682.6B, down sharply from the ~$1.32T peak in 2013. It’s not a sudden exit — it looks more like a slow repositioning of where Beijing prefers to park its “safe” reserves.

If this continues, it could reshape global flows over time — and risk assets may eventually feel the ripple effects as capital reallocates.

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