Chinese regulators have told financial institutions to limit their purchase of U.S. treasuries amid concentration risks and market volatility. Those with high exposure to the bonds have been advised to reduce their holdings, reported Bloomberg on Monday.
Notably, the advice is not applicable to Chinese state holdings of U.S. government bonds. The publication reported that the directive had been issued to the financial institutions before the recent call held between President Donald Trump and Chinese President Xi Jinping.
As per U.S Treasury data, China’s holding is worth $682.6 billion as of November 2025, the third-largest after Japan and the UK.
Economist Peter Schiff said that China’s move will mainly prompt the Federal Reserve to buy the bonds, creating inflationary conditions for consumers.
“That will send consumer prices soaring,” he wrote on X.
China has advised its …Full story available on Benzinga.com
