BEIJING (Dow Jones)–China has made a sharp shift away from purchases of U.S
securities, slashing the dollar’s share of the country’s foreign reserves in what
may signal a change in strategy for managing the massive cash pile, Dow Jones
calculations indicate.
The portion of China’s reserves parked in the U.S. appears to have sunk to a
decade low 54% as of end-June from 65% in 2010 and 74% in 2006, according to the
Dow Jones calculations. The calculations are based on data on China’s holdings of
U.S. securities from an annual U.S. Treasury survey, and China’s own data on the
value of its FX reserves.
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