Treasury bonds sold

 

Something's wrong! China sold $15.7 billion in U.S. debt in three months, and Japan sold $14.6 billion in one month... Three major creditors collective reduction, what signal?

After three consecutive months of buying, overseas investors began to sell off again. In august alone, japan, china and britain, the top three foreign holders of u.s. debt, sold $24.8 billion.
In the top three U.S. debt holders, China has sold U.S. debt for three consecutive months, totaling $15.7 billion; Britain has reduced its holdings by $26 billion in three months; and Japan, the largest lender, sold $14.6 billion in August alone...
China sold $15.7 billion in U.S. debt for three consecutive months
Foreign investors held $7.083 trillion in U.S. debt in August, down from a record high of $7.097 trillion in July, according to recent Treasury data.
 China, the second-largest creditor, sold $5.4 billion in U.S. debt in August, down to $1.068 trillion. This has been China's three consecutive months of reducing U.S. debt, including June reduction of $9.3 billion, July small reduction of $1 billion.
 Although China remains the second largest creditor in the United States after the reduction, its position of $1.068 trillion has reached a new low since March 2017.

This year, In January, February and May, China increased its US debt holdings by $8.7 billion, In March and April, they reduced their holdings by $10.7 billion and $8.8 billion respectively.
While reducing U.S. debt, China has increased its investment in Japanese government bonds. Between June and August, China bought 2.2 trillion yen (139.9 billion yuan) of Japanese government bonds, a record quarterly purchase of Japanese bonds, according to the Ministry of Finance.
Countries are selling American debt
As the largest creditor in the United States, Japan reduced its $14.6 billion debt to $1.278 trillion in August, and remained the largest creditor in the United States. That month, the country held 6.3 percent of total U.S. debt, holding a low proportion of innovation.
In July, Japan held a sharp increase of $31.5 billion, a record high of $1.293 trillion. Japan surpassed China as the largest creditor to the United States in June last year and remains so far.
In August, the UK reduced its holdings of US debt by $4.8 billion to $419.9 billion, and its position remains the third largest holder of US debt.
This is the third consecutive month in the UK reduction, including a sharp reduction of $21 billion in July and a small reduction of $200 million in June. The UK increased its holdings by $22.3 billion in May last year, surpassing Brazil as the third largest holder of US debt. .
In addition, in August, Brazil, Canada, Thailand, the Netherlands, Israel, Australia, Spain, Sweden and other countries have reduced their U.S. debt to varying degrees. However, some countries have increased their US debt, including Ireland, Switzerland, Belgium, India, Singapore and France.
The U.S. fiscal deficit is record, and dollar assets are less attractive
 CNmoulding comments: now including our plastic injection molding industry, a large number of export industries still rely on dollars for settlement. If the dollar has really been indiscriminate, international settlement with yen, euro instead of the dollar will happen soon.

First half GDP in 2020

 The United States fell 4.6 percent, so what about China?

No need to say, everyone also knows that Chinese science and technology ah, decades ago is still very weak, after years of development, the level of science and technology has finally caught up. With the development of science and technology, our life has changed dramatically. Looking back on life more than ten or twenty years ago, we feel like dreams.

It is also thanks to the great progress of science and technology, so our country's economic growth is also very rapid, especially valuable, our economic growth has always maintained a relatively fast speed, and by contrast, developed countries like the United States, Their economic growth rate has been very slow.

This year is also an unusual year, because the outbreak caused a certain degree of "degradation" of the world's economy, according to statistics, only two of the more than 200 countries in the world have maintained positive economic growth. Come today to tell you the first half of 2020 GDP ranking: the United States fell 4.6, so what about China?

 Let's first look at the GDP of the top US, which GDP reached $10.11 trillion in the first half of the year, shrinking 4.6 percent from last year. But as we all know, the United States is one of the worst countries in the world. Under such severe circumstances, the United States can still maintain a $10.11 trillion GDP, which has to admire the strength of the United States.

However, to admire, the real king is still China, our country is the first outbreak of the epidemic, after a difficult war and epidemic, our economy fell in the first quarter, but the second quarter has been restored. The economy began to grow again, GDP in the first half reached $6.5 trillion.

China has given the world a perfect answer, and the big problem of the epidemic has not defeated us. On the contrary, it is an opportunity to make us more powerful. We have begun to hide our strength and continue to develop. China mold maker believe that in the near future, Our country will develop like other countries.

Nomura: China's economy is expected to grow 9.4% in 2021

 $3 trillion into China

All indications are that more and more global money will accelerate into the Chinese market. As expected, things have made the latest progress. According to a new report published by Nomura, the GDP, of China for 2020 and 2021 increased from 1.7 percent and 8.8% to 2.2% and 9.4% respectively.

Another development is that Russian media reported on RT9 9, a new survey found that 92.1% of American companies in China still plan to continue production operations in the Chinese market and do not leave. Mark McPlus, known as the "Godfather of emerging markets," said recently that our position in China is the largest. Our revenue target is 20% per year. In the next 10 to 20 years, we expect China's opportunities to continue to expand.

 'I've always been bullish on China,' he said because since I first came to China in the 1970s and began investing in China in 1987, I've seen how the Chinese are making progress for a richer life, which is incredible. China's rise as one of the world's fastest-growing countries is encouraging and offers investors like me an excellent opportunity to invest in world-class Chinese companies. These companies have the highest return on investment in the world and the fastest profit growth in the world. This also confirms, we have mentioned many times, the Chinese market is becoming the world's most important investment harbor.

At the same time, global investment banking institutions, including Goldman Sachs and west pacific bank of Union Bancaire Privee、, have adjusted their forecasts for yuan assets over the past two weeks to see the yuan strengthen. Most institutional investors believe that short-sellers have begun to concede.

 UBS recently said that the Chinese market is attractive globally because China's GDP share of global GDP is increasing year by year. Nevertheless, the proportion of international investors holding renminbi assets is actually not high compared with the proportion of GDP. In addition, Chinese assets account for only 4% of the MSCI global index, which means that there is more room for future international investors to invest in the renminbi asset market.

In the bond market, for example, Bloomberg reported earlier that renminbi bonds were more attractive than dollar bonds and German bonds. Foreign institutional investors held up 2.344 trillion yuan in Chinese bonds in July, up 38 percent from June, a record high and the 20th consecutive month, according to the latest data released in August.

 Global asset manager Jingshan earlier said the move was expected to attract about $1.2 trillion into china's bond market over the next five years as Chinese government bonds and policy bank bonds are officially incorporated into more international bond indices. Market participants said the chances of Chinese government debt being included in FTSE's global government bond index later in September were high, and Standard Chartered said it expected larger inflows by 2021, totaling about 2 trillion yuan.

This further confirms the view that more and more money will flow into the Chinese market. Just as Wall Street's commodity king, known as the most visionary Wall Street investment master, billionaire Jim Rogers has been a staunch fan of the Chinese economy. He believes that RMB assets will become one of the most important monetary assets of the 21st century. Long-term investment in the Chinese market is a wise choice for global investors.

 Not only that, Charlie Munger, partner of Warren Buffett, a stock god, said publicly a few weeks ago that China's capital markets were a better choice. And Forbes.com recently published a review entitled "Why Buffett sees China ", Buffett said the Chinese economy is destined to have a bright future. That means Buffett and his partners have long been bullish on the Chinese economy.

 Also worth mentioning is the success of Miriam Turk, chief executive of Canadian Clear Blue, who invested in a Chinese auto company through Buffett, praised China's strategic layout and global investment vision, and called on the United States to learn from the Chinese economy.