Chinese investors sold record amounts of U.S. stocks and bonds in May as diplomatic tensions between the world's largest economies continued to rise, according to Bloomberg.
Asian country funds sold a net $42.6 billion in long-term securities, which include Treasuries, agencies, corporate and other bonds and stocks, according to the latest data from the U.S. Treasury Department on Thursday. worth of dollars. Total sales in the first five months of this year reached 79.7 billion. dollars – this is an all-time record for the period of January – May.
Chinese investors may have sold U.S. stocks to hedge against uncertainty over the U.S. presidential election, Sydney-based Global X Management Co. said. investment strategist Billy Leung. Also, "there is a possible political influence to reduce US dollar reserves," he added.
Treasuries accounted for more than half of sales, followed by agency debt and stocks.
China is one of the largest holders of US government debt securities, and its flows are closely watched by both bond investors and geopolitical strategists. Rising tensions between China and America have often fueled speculation that Beijing may shift its foreign reserves away from US assets, which would likely boost yields.
