Beijing suspected of hiding US$700bn in US bonds

Liu Mingkang, the chairperson of the China Banking Regulatory Commission, has accidentally revealed that China may hold US$700 billion more in US bonds than it has previously stated, reports Japanese newspaper Nikkei, which said the disparity shows the country’s mistrust of the US.

The Chinese official said during a speech delivered in Washington DC on April 16 that over half of China’s foreign reserves have been invested in US bonds and that as of the end of March this year, around US$2 trillion of the country’s US$4 trillion in foreign reserves are in US dollars.

The figure does not match those provided by the US Treasury, which said China held around US$1.3 trillion in US bonds as of the end of February this year.

Analysts said China could hold the bonds anonymously or under other account names. The country has held Japanese stocks under the name OD05 Omnibus and has an account in the Japan Securities Depository Center.

Full article: Beijing suspected of hiding US$700bn in US bonds (Want China Times)

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