While China's sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines. The nation's stash of American stocks sank about $126 billion, or 38 percent, from the end of July through March, to $201 billion, Treasury Department data show. That far outpaces selling by investors globally in that span -- total foreign ownership fell just 9 percent.


The liquidation of shares suggests China's central bank was still under pressure to raise dollars and smooth the yuan's depreciation even though Treasuries selling abated, including through suspected custodial accounts in Belgium. The equities reduction reminds investors that while China's $1.4 trillion trove of Treasuries dwarfs its other foreign assets, it has accumulated enough U.S. stocks to influence global markets.

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