2017.09.1901:15:00UTC+00 China Boosts Treasury Holdings to Near One-Year Peak

China increased its holdings of U.S. Treasuries to its highest level in almost a year, reflecting the effectiveness of the government policies aimed to curb capital outflow.

According to data released by the Treasury Department, China's holdings of U.S. bonds, notes and bills for the sixth consecutive month by $1.17 trillion in July. This denotes an increase of $19.5 billion U.S. Treasury holdings from a month earlier.

Meanwhile, Japan held $1.11 trillion, up by $22.3 billion from June, notching the biggest increase in almost four years.

In June, China reclaimed its spot as the biggest foreign holder of U.S. Treasuries, a position held by Japan for eight months.

The two nations represent over one-third of all ownership of Treasuries abroad, which rose by $78.7 billion, amounting to $6.25 trillion in July, the data showed. The latest figures are the highest foreign investors' holdings of U.S. Treasuries since June last year.

China forex reserves climbed for the seventh straight month in August, totaling to $3.09 trillion. China's capital flight have also weakened amid the tighter restrictions, helping to stabilize the yuan. The Chinese currency has rallied around 6 percent this year after depreciating by 7 percent in the previous year.