Latest international capital flow data shows that China's holdings of US Treasury bonds fell to $693.3 billion in February this year, a month-on-month decrease of $1.1 billion, marking the second consecutive month of reduction. Despite the decline in China's position, total foreign-held US Treasury securities recorded the largest increase in a year in February, reaching a record high of $9.49 trillion, up $197.7 billion from the revised figures of the previous month.

The growth in total volume was primarily driven by increased holdings by Canada and Saudi Arabia. Canada increased its holdings by $50.5 billion in February to $446.3 billion; the country's monthly holdings have historically been relatively volatile. Saudi Arabia increased its holdings by $25.6 billion to $160.4 billion in the month prior to the outbreak of regional conflict. Japan, as the largest overseas holder, increased its holdings by $14 billion in February to $1.2393 trillion. The United Kingdom, as the second-largest holder, increased its holdings by $17.6 billion in February to $897.3 billion. China currently remains the third-largest holder.

It is worth noting that holding data reflects both net buying and selling activity as well as valuation changes. A US Treasury index rose 1.8% in February. Data shows that China's holdings in January were $694.4 billion, an increase of $10.9 billion from $683.5 billion in December 2025. After the reduction in February, holdings fell to $693.3 billion. China's holding scale has continued to decline since hitting a historical peak of $1.3167 trillion in November 2013, and the current level has decreased by about 47% from the high point. Recent reports indicate that Chinese regulators have instructed financial institutions to limit purchases of US Treasury bonds to cope with concentration risk and market volatility, though this guidance does not apply to state-level holdings of US Treasuries.