China cuts US treasury holding in January

WASHINGTON - China reduced its holding of US Treasury securities in January after adding $9.1 billion in the previous month, the latest data from the US Treasury Department showed on Wednesday.

China shed its treasuries holding by $7.3 billion in January, with the total holding down to $1.0511 trillion.

China's central bank chief Zhou Xiaochuan said recently that Chinese currency, the yuan, will stabilize this year amid a firming economy and global confidence in the country's growth prospects. He also reiterated that the fall in China's foreign exchange reserve is a normal phenomenon.

Japan, which overtakes China as the largest holder of US treasuries in October, increased its holding by $11.7 billion to $1.1025 trillion in January.

By the end of January, overall foreign holdings of US Treasury securities dropped to $5.9561 trillion from December's $6.0039 trillion.