BEIJING (Reuters) - China may adjust its investment in U.S. Treasuries while reductions in Treasury holdings is a tactical move, foreign exchange regulatory official Li Hongyan told reporters on Thursday.
China needs to take “counter-cyclical” steps to control large capital outflows, said Wang Chunying, spokeswoman for the State Administration of Foreign Exchange (SAFE).
China’s outbound direct investment has been too much and too fast this year, Wang said.
The authorities can keep the yuan basically stable, central bank chief economist Ma Jun said at the same briefing, as optimism about the U.S. dollar may be overdone.
Reporting by Kevin Yao; Editing by Jacqueline Wong