China Secretly Buying U.S. Treasuries Because Deep Down They Can't Get Enough.

China isn’t actually selling down its U.S. Treasury holdings, according to macro strategy firm GaveKal. They’re just using different avenues to buy them. In the end they’re hooked no matter what fears investors could hold about a Chinese pullback from U.S. debt.

Globe And Mail:

“We do not believe that the Chinese are dumping Treasuries,” Arthur Kroeber, managing director of GaveKal Dragonomics, a Beijing research firm, told Associated Press. “What they are doing is diversifying the channels through which they make these purchases so that it is much more difficult for the market to ascertain what they are doing.” The U.S. Treasury identifies only the country of origin of the direct purchaser of its securities. So any bonds acquired through London, for example, would show up as a sale to Britain.

Read more here >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

china debt moneygame-us