Videos Latest Feature Sports Your Videos
 

China's US debt may lose value

0 CommentsPrint E-mail CNTV, May 17, 2011
Adjust font size:

 

Analysts say China's holdings of US debt may lose value, if the US congress doesn't raise the ceiling for debt. If America can't make its repayments on time, China as the biggest holder of US debt, will take the hardest hit. China will then face the dilemma of buying more bonds while the yield is higher, or selling like other panicky investors.

Experts say the US Federal Reserve is still carrying out quantitative easing and maintaining an ultra easy monetary policy. So the greenback may very well depreciate, taking China's dollar-denominated assets down with it.

 

Print E-mail Bookmark and Share

Go to Forum >>0 Comments

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter