China reduces US debt holdings

Regulator says decision based on prevailing market situation

China reduced its holdings of US treasuries to a seven-month low in January, amid concerns that the world's largest bond market might suffer headwinds from impending interest rate increases.

The total amount of US treasuries held by China dropped to $1.17 trillion in January, compared with $1.18 trillion a month earlier, the US Treasury Department said in data released on Thursday.