China Dumping More Than Treasuries as U.S. Stocks Join Fire Sale
- Equity holdings fall $126 billion from July, U.S. data show
- Drop of 38% compares with 9% reduction for all foreigners
Chinese Investors Add U.S. Equities to Treasury Selloff
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For the past year, Chinese selling of Treasuries has vexed investors and served as a gauge of the health of the world’s second-largest economy.
The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows.