
Chinese regulators have privately instructed major commercial banks to limit new U.S. Treasury purchases and gradually reduce large holdings due to market volatility and concentration risks. Sovereign reserves are unaffected, but China’s Treasury holdings are near multi‑year lows after years of diversification. Analysts suggest this cautious approach reflects broader interest in alternative assets, including Bitcoin and other cryptocurrencies, as China seeks to manage risk while exploring non‑dollar stores of value.
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