CHINA’S holdings of U.S. Treasuries fell in July to their lowest since early 2013 as official ownership of U.S. government debt declined for a fourth straight month, data from the U.S. Treasury Department showed Friday.

    China, which remained the bigger U.S. creditor, owned US$1.219 trillion of U.S. government debt in July. This was the lowest level since US$1.214 trillion in January 2013.

    The figures compare with official Chinese data showing that the nation’s foreign-exchange reserves were little changed in July at US$3.2 trillion, though they’re down from a peak of close to US$4 trillion in 2014. The reserves dropped US$16 billion in August to the lowest level since 2011.

    The relatively steep monthly drop in China’s U.S. Treasuries holdings may raise questions about how much the world’s No. 2 economy may be spending from its currency reserves to support the yuan.

    There has been speculation that China’s central bank will try to keep the currency stable before its official inclusion in the International Monetary Fund’s Special Drawing Rights basket in October.

    Japan maintained its status as the second-biggest holder of U.S. Treasuries at US$1.155 trillion, which was the most since September 2015 when it was US$1.177 trillion.

    Overall, foreign investors sold US$13.1 billion in U.S. government debt in July, following US$32.9 billion in sales in June.

    Overseas investors purchased US$103.9 billion of U.S. long-term securities in July after selling US$500 million in June.

    The June sales figure was previously reported at US$3.6 billion.

    Including shorter-dated securities, overseas investors bought US$140.6 billion in U.S. assets, compared with a revised US$194.5 billion sold in June.

    (SD-Agencies)