DBS Group Research, led by FX & Credit Strategist Chang Wei Liang, examines China’s evolving holdings of US securities over the past decade. The study looks for evidence of de-dollarisation, highlighting substantial Chinese net outflows from US equities and bonds and assessing how geopolitical tensions and sanctions risk are influencing China’s portfolio allocation decisions.

Examining China’s US securities holdings

“Given this backdrop, how have foreign holdings of USD assets changed over time, and is there any evidence of a “de-dollarisation” in financial assets?”

“Given the size and importance of China, we examine the trend in Chinese holdings of US securities over the last ten years.”

“Chinese net outflows from US equities and bonds over the last decade have been substantial.”

“But China’s de-dollarisation is not reflective of any broader trends across other countries.”