China's Holdings of US Treasuries Fall to $618 Billion, Lowest Since August 2008

According to Donya-e-Eqtesad, citing the latest US Treasury Department report, the value of US government debt held by Chinese institutions and investors fell to $618 billion in July 2026 (Tir 1405), the lowest level since August 2008 and far below its historical peak of $1.3 trillion in November 2013. Citing the Financial Times, the report said the trend accelerated after the United States froze Russia's foreign reserves following the 2022 invasion of Ukraine. Analysts, including Wei Li, an investment director at BNP Paribas in China, say part of the shift has moved into gold and US equities. Deutsche Bank data cited in the report show international capital inflows into US stocks reached 2.8 percent of US GDP in the year to June, the first time this century, aside from the pandemic period and just after the 2008 crisis, that equity inflows have exceeded those into government bonds.