Reply #19: (China) Economists urge selling US Treasuries [View All]

[Ghost Dog]

BEIJING – China faces high risks in holding a large amount of US Treasury bonds and should be cautious about further purchases, said economists home and abroad.

"China has to consider the safety of the huge amount of the US Treasuries it owns, it will do good to the nation if China could reduce it," said Yu Yongding, a former adviser to the Chinese central bank, during the China Development Forum 2011 held in Beijing.

China holds foreign exchange reserves worth $2.8 trillion, among which $1.15 trillion is used for buying into US Treasuries. "It's really a huge figure," said Yu.

"We could possibly buy much less than now when China wants to change the US Treasury bonds into commodities someday, thanks to the rising price of the commodities and decreasing price of the US bonds. Selling of the bonds will bring benefits to China," he added.

/... http://www.chinadaily.com.cn/bizchina/2011-03/19/content_12197090.htm