China Continues to Sell Off US Debt, Holdings Drop to 18-Year Low of $652.3 Billion in March
According to the latest data from the U.S. Treasury Department, China continued to sell off its U.S. Treasury holdings in March, unloading about $41 billion. This brought its total holdings down to $652.3 billion, an 18-year low since 2008. Ding Zhijie, Director of the Financial Research Institute of the People's Bank of China, stated that the sell-off was directly triggered by global financial market volatility caused by the 'U.S.-Iran war,' prompting investors to reduce risk under a 'cash is king' approach. As of the end of March, the top three foreign holders of U.S. debt were Japan, the United Kingdom, and China, respectively.
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- 📰 Published: May 19, 2026 at 21:27
- 🔍 Collected: May 19, 2026 at 21:32 (4 min after Published)
- 🤖 AI Analyzed: May 19, 2026 at 22:05 (33 min after Collected)
(CNA, Taipei, May 19) Reuters reported that the latest data released by the U.S. Treasury Department on the 18th shows China continuing to sell off its U.S. Treasury bonds. In March of this year, it sold off about $41 billion, a 6% decrease compared to February, bringing its total holdings down to $652.3 billion (approximately NT$20.7 trillion), a new low since 2008. The report mentioned that as of March this year, China is still the third-largest foreign holder of U.S. Treasury bonds, but its total holdings have decreased by over 14% compared to the beginning of 2025. During the same period, the largest foreign holder of U.S. Treasury bonds was Japan, with total holdings of $1.19 trillion, a decrease of $47.7 billion from February, a drop of nearly 4%. The second-largest foreign holder was the United Kingdom, with total holdings of $926.9 billion, an increase of $29.7 billion from February, a rise of about 3.3%. Additionally, according to a report by Yicai, Ding Zhijie, Director of the Financial Research Institute of the People's Bank of China, commented on China's sell-off of U.S. Treasury bonds, stating that the 'U.S.-Iran war' was the most direct incentive for multiple countries to sell off U.S. Treasuries in March, as the conflict triggered intense volatility in global financial markets, and the need for liquidity drove investors to sell. Ding mentioned that due to a sudden surge in panic and the impact of energy prices, liquidity in financial markets tightened sharply. Some investors, driven by a 'cash is king' risk-aversion consideration, proactively reduced their U.S. Treasury holdings to lower their portfolio risk. (Editors: Chiu Kuo-chiang / Tang Pei-chun) 1150519