
China has recorded substantial net outflows from US equities and bonds over the past decade. DBS Group Research, led by FX & Credit Strategist Chang Wei Liang, analyses changes in the country’s US securities holdings for evidence of de-dollarisation. The study also assesses how geopolitical tensions and sanctions risk shape China’s portfolio allocation decisions.
"Given this backdrop, how have foreign holdings of USD assets changed over time, and is there any evidence of a “de-dollarisation” in financial assets?"

"Given the size and importance of China, we examine the trend in Chinese holdings of US securities over the last ten years."
"Chinese net outflows from US equities and bonds over the last decade have been substantial."
"But China’s de-dollarisation is not reflective of any broader trends across other countries."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)