Experts remark on China cutting US T-bonds

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For China's trimming of its holding of the US treasury bonds, Experts have made remarks pointing the reasons behinds the reduction.

Liu Yuhui, Researcher of China Academy of Social Sciences said "The yields of US T-bonds rose by 15% in the second quarter. Market have felt more and more worry about US dollar assets. So many foreign investors cut down their holding of US T-bonds."

Ha Jiming, Chief Economist of CICC said "It reflects that market is worried that US huge budget deficit and loose credit may lead to bad inflation."

Roger Myerson, Professor of University of Chicago said "As the largest holder the United States' debt, China should maintain the stability of its holdings. It has already had enough US T-bonds and should not purchase more."

Wang Qing, Chief Economist of Morgan Stanley (Greater China) said "As market does not look positive on US T-bonds, we think infrastructure investment is a good way to spend Chinese savings, especially when the domestic demand is growing fast."