The Chinese foreign exchange regulator says China's reduction of its US Treasury bond holdings in October was not a strategic move. China lowered its holdings by $41.3 billion in October to $1.12 trillion. That's China's lowest level of US holdings since July 2010.

The regulator said buying US treasury bonds is of strategic importance in China's foreign exchange investment. The regulator also said the reduction came amidst increasing uncertainties towards the real value of US bonds but was purely a market move. Several other overseas holders of US debt also have decreased their holdings. Japan cut $4.5 billion worth of US debt in October.