China's holdings of U.S. Treasury securities fell to $63.34 billion in June, reaching the lowest level in nearly 18 years.

Foreign media: Data from the U.S. Department of the Treasury shows that China reduced its holdings of U.S. Treasury bonds to $63.34 billion in June, marking the lowest level in nearly 18 years since September 2008, a significant decline from $65.93 billion in May; meanwhile, total foreign ownership of U.S. debt fell from $937.1 billion to $929.9 billion during the same period.

This move reflects Beijing's strategy of diversifying reserves amid geopolitical tensions and uncertainty surrounding U.S. economic policies: heightened risks of renewed U.S.-Iran conflict threatened oil supplies and global inflation in June, while new Federal Reserve Chair Kevin Warsh's first policy meeting did not release interest rate projections, reducing forward guidance and making it harder for investors to anticipate future rate movements. Additionally, growing market concerns about Washington's fiscal sustainability pushed long-term U.S. Treasury yields to multi-year highs, further prompting China to reduce its exposure to dollar-denominated assets.

Original article: toutiao.com/article/1873849745259532/

Disclaimer: The views expressed in this article are solely those of the author.