$GPS
🇨🇳 China Cautions Banks: Cut US Treasury Exposure! ⚠️
Beijing is sending a clear signal to its state-owned banks: reduce exposure to US Treasuries due to growing market risks. This directive from China's central bank and financial regulators is a significant move with potential ripple effects across global markets.
🔍 The Rationale:
Market Volatility: Chinese officials are reportedly concerned about increasing volatility in US bond markets, particularly with fluctuating interest rate expectations and the looming US debt ceiling debates (though the current administration aims for stability, the long-term view is always considered).
Geopolitical Risk: Underlying this financial concern are ongoing geopolitical tensions between the US and China, which can impact the stability of cross-border financial holdings.
Diversification Strategy: This move aligns with China's long-term strategy to diversify its vast foreign exchange reserves away from a heavy reliance on the US dollar and its assets.#chinesenewyear #UStreasury #banks #china #WhaleDeRiskETH