Media reports on China considering reducing or halting purchases of U.S. Treasuries could be based on wrong information, a Chinese government source said on Thursday.

Bloomberg News reported on Wednesday that Chinese officials reviewing the country’s vast foreign exchange holdings have recommended slowing or halting purchases of U.S. Treasury bonds.

China has been diversifying its foreign exchange reserves investments, the source who declined to be named said, adding that China’s investments in U.S. Treasuries are market-driven.

China’s foreign exchange regulator later on Thursday said that the media reports that China is considering slowing or halting purchases of U.S. Treasury bonds could be based on erroneous information.

Source: cnbc china
Reports on China slowing US debt buying could be based on wrong information, source says