China unlikely to accelerate sales of dollar assets

Chinese regulators have reportedly asked banks to curb their exposure to US Treasuries. While Chinese banks' holdings of dollar-denominated bonds have decreased over the past year, they've largely swapped them for other dollar assets, suggesting they aren't in a rush to reduce overall dollar exposure. If anything, China's purchases of dollar assets have probably picked up in recent months as the authorities have switched to leaning against appreciation pressure on the renminbi.