SAFE affirms market-oriented behavior

The Chinese foreign exchange regulator denied it has deliberately slowed down or suspended an increase in US Treasury bond holdings, it said in a statement released on its website Thursday in response to recent media reports.

The State Administration of Foreign Exchange said the Chinese foreign exchange reserve's investment in the US treasury is market-oriented behavior, and the regulator takes professional management on it according to the market's situation and investment needs.

Investment management for the Chinese foreign exchange reserve is done to ensure safety and increase the reserve's value, the statement said.

Some media outlets have recently reported the Chinese authority has slowed down or suspended investment in US Treasury bonds. "The report might quote wrong information, or it might be fake news," SAFE said.

It also affirmed the foreign exchange reserve manager's role as a "responsible investor" and emphasized its investment behavior has contributed to the stabilization of international financial markets and helped support the value of the reserves.