China’s holdings of US Treasuries rose for a third straight month in April, reaching the highest in half a year amid signs the economy is stabilizing. Chinese ownership of US government bonds, notes and bills increased by $4.6 billion to $1.09 trillion in April, remaining the second-largest foreign holder of American debt, according to a monthly Treasury Department report released on Thursday. According to Bloomberg, things are starting to look up in China following several years of persistent capital flight and soft economic performance. The manufacturing sector is growing again, factory prices are reflating, and capital outflows have shown signs of abating. All that has helped to stabilize the yuan and enabled the People’s Bank of China to accumulate reserves. After bottoming in January, the nation’s reserves rose $55 billion to $3.05 trillion in May, contributing to a $34 billion increase in China’s Treasury holdings this year.
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