China boosts holdings of U.S. debt for 3rd month

By Kim Young-gyo
HONG KONG, Aug. 16 (Yonhap) -- China increased its holdings of the U.S. Treasury debt in June for the third month in a row, data showed Tuesday, indicating the U.S. government bonds remain an attractive investment vehicle for the world's No. 2 economy.
According to a monthly report released online by the U.S. Department of Treasury, China's holdings of U.S. government debt rose to US$1.16 trillion in April, up $5.7 billion from the previous month.
Since April, China's U.S. dollar assets have been rising after declining for five straight months. China remained the biggest foreign holder of U.S. Treasuries, followed by Japan, which sold $1.4 billion worth of the U.S. state debt in June.
The figures were released following the recent downgrade of the U.S. credit rating by Standard & Poor's. The downgrade has increased worries over the U.S. economy and hurt the global markets.
Beijing has urged Washington to take "responsible" measures to address market confidence in the dollar and U.S. government debt, as uncertainty has grown about its large holdings of U.S. Treasury bonds.
Gary Locke, the new US ambassador to China, said Sunday China's dollar investments in the United States remain safe despite concerns following the country's credit rating downgrade.
Meanwhile, U.S. Vice President Joe Biden is set to start his six-day visit to China on Wednesday. Biden is expected to exchange views with Chinese leaders on issues that include the U.S. government debt.
ygkim@yna.co.kr