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BEIJING,Aug 17(Xinhuanet) -- China reduced its holdings of U.S. Treasury debt for a second straight month in June while the holdings of Japan and Britain rose.China's holdings fell by billion to 3.7 billion, a decline of 2.7 percent, the Treasury Department said Monday in a monthly report on debt holdings.Total foreign holdings of Treasury securities rose .6 billion to a total of trillion, an increase of 1.2 percent.The debt figures are being closely watched at a time when the US government is running up record annual deficits. A drop in foreign demand would lead to higher interest rates in the United States. The yield on Treasuries rises when fewer people invest in them.It would start with the US government paying more interest on its .3 trillion national debt and then ripple through the economy. Consumer loans such as home mortgages and auto loans track the yields on Treasurys, so they could rise, too.So far, interest rates in the United States have remained extremely low. A weak economy has depressed borrowing by the private sector and the Federal Reserve has kept a key interest rate at a record low level of zero to 0.25 percent in an effort to spur stronger growth.US interest rates have also been kept low by the European debt crisis in the spring. That triggered more investment in US Treasurys, which are considered the safest investment in the world because the US government has never defaulted on its obligations.China is the largest foreign holder of Treasury securities. The billion decline in China's holdings in June followed a .5 billion drop in May. China's holdings had hit a high for this year of 0.2 billion in April.There are concerns that China could influence US interest rates by rapidly selling off its holdings of US debt. That could lead others to dump their holdings and result in a spike in interest rates.But analysts say China is more likely to sell a little bit at a time."While it would hurt the United States if China started selling off our securities, it would hurt China just as badly because it would drive down the value of their holdings," said David Wyss, chief economist at Standard & Poor's in New York.Wyss predicted that China will slow its acquisition of new US government debt while diversifying its holdings. Wyss said that process has already begun, noting China's recent acquisition of energy and other natural resource holdings in Latin America and Africa.Japan, the second largest foreign owner of Treasury bonds, increased its holdings in June to 3.6 billion. That's an increase of .9 billion or 2.5 percent. Britain's holdings rose 3.5 percent to 2.2 billion.Japan had for years been the No 1 holder of Treasury securities, but was overtaken by China in September 2008.New government data showed that Japan lost its place as the world's second largest economy in the second quarter of this year. China moved up from No 3 to the No 2 spot, behind the United States.While the data on total economic output was for the second quarter, analysts believe China is on track to surpass Japan for the entire year and become the world's second largest economy.The US Treasury report said that net purchases of long-term securities, a category that covers not only US government debt but also debt of US companies, increased by .4 billion in June after rising .3 billion in May.
YICHUN, Aug. 26 (Xinhua) -- Two days after the deadliest commercial plane crash in China in nearly six years killed 42 people in a remote northeastern city, doubts and speculations continue to swirl and no progress has been reported in the government investigation.A brief press conference was held Thursday afternoon -- the first in more than 40 hours after a Brazil-made ERJ-190 turbine jet run by Henan Airlines crashed at Lindu Airport of Yichun, Heilongjiang Province.But officials and an airline executive who addressed the conference did not say what caused the accident or whether their data analysis of the two black boxes found on Wednesday had achieved any results."The black boxes have been sent to Beijing and our specialists are still working on the data," said Lu Xue'er, an official in charge of aviation safety at the General Administration of Civil Aviation (CAAC).A representative from Henan Airlines offered an apology and condolences to the victims and their families."We're grieved over the tragedy," said Liu Hang, Chairman of the Supervisory Board the airline. "Our condolences for the dead and apologies to all the victims, their families and the whole society."He said his company had opened 24-hour hotlines at its headquarters in Zhengzhou, central Henan Province, Harbin and Yichun to help victims' f

BEIJING, July 22 (Xinhua) -- The central parity rate of the yuan, China's currency Renminbi (RMB), weakened to 6.7859 per U.S. dollar Thursday from 6.7802 per U.S. dollar Wednesday, according to the data released by the China Foreign Exchange Trading System.China's central bank announced on June 19 that it would further the reform of the formation mechanism of the yuan exchange rate to improve its flexibility.
MOSCOW, June 24 (Xinhua) -- Mayors of Beijing and Moscow signed here Thursday cooperative plan between the two cities for 2010- 2012.Moscow Mayor Yuri Luzhkov introduced the municipal administration, city plan and economic development to his Beijing counterpart Guo Jinlong, who led a delegation for a visit to Russia starting from June 20.Based on the cooperative plan, official delegations will engage in mutual visits during the three years, as well as exchanges between experts on energy efficiency, security, telecommunications, mass media and management.The plan said both sides would expand cooperation and provide support for each other on promoting economy, city plan and technologies.The two cities would also further develop collaboration and contact in education, social security, environment protection, heritage conservation, culture, sanitation, sports, city infrastructure, among other things.Beijing municipal government also donated two buses with green energy to Moscow.
BEIJING, July 28 (Xinhua) -- President Hu Jintao and Premier Wen Jiabao on Wednesday respectively sent condolence messages to their Pakistani counterparts after a deadly airplane crash that killed all the 152 people on board.In his message, Hu, on behalf of the Chinese government and the people and in his personal name, conveyed to Pakistani President Asif Ali Zardari his profound condolences for the victims and sincere regards to the families of those killed in the worst plane crash ever in Pakistan.In a separate message, Premier Wen Jiabao extended to Pakistani Prime Minister Syed Yusuf Raza Gilani his condolences for the victims and offerred regards to the families of those killed.Earlier Wednesday, an Airbus 321 carrying 152 people crashed minutes before it was supposed to land in Islamabad, killing everyone onboard, including at least 20 women and seven children as well as two Americans and a Somalian.The Airblue flight carrying 146 passengers and six crew members left Karachi in the morning and lost contact with the control tower at the Islamabad airport shortly before the crash. The plane was on its way from Turkey to the Pakistani capital via Karachi.The plane, which was manufactured in 2000, was leased in January 2006 by Airblue, a private service based in Karachi, Pakistan's largest city, according to local media.Also Wednesday, Chinese Foreign Minister Yang Jiechi sent a condolence message to Pakistani Foreign Minister Shah Mehmood Qureshi for the deadly air crash and the serious casualties.
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