Abstract

This paper studies China's purchase of American treasury securities on the base of data analysis,focusing on the source, profit and impact. The conclusion shows that the growth of its foreign reserve is the main impetus for China to buy American treasury securities. The return rates of the purchase, however, is not attractive. Moreover, China's holding of American treasury securities does not threat the U. S. monetary market or economy in terms of total amount and proportion. Generally speaking, the financial relation between China and America is not quite symmetrical as China is much more dependent on America, which should be recognized.

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