Chinese regulators have advised the country’s biggest banks to rein in their exposure to U.S. Treasuries, citing concentration risk and market volatility, Bloomberg News reported Monday.
The guidance, delivered verbally in recent weeks, included instructions to limit purchases of U.S. government bonds and for banks with heavier exposure to pare positions, according to people familiar with the matter cited by Bloomberg. Bloomberg said the directive does not apply to China’s state holdings of Treasuries.
Officials framed the move as a market-risk diversification step rather than a geopolitical signal or a judgment on U.S. creditworthiness…
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