China expresses concern over S&P's US report

China’s foreign ministry said that the US government should act to protect investors in its Treasuries after a controversial report by Standard & Poor’s (S&P) placed US government debt on a “negative” watch, the Financial Times reported. “We hope the US government will take responsible policies and measures to safeguard investors’ interests,” the ministry said. China has US$3.05 trillion in foreign exchange reserves, of which US$1.15 trillion was held in US Treasures at the end of February, ahead of Japan (US$890.3 billion) but behind the US Federal Reserve (US$1.37 trillion). China has repeatedly urged the US to protect foreign investors by not inflating its currency. This reaction stands in contrast to that of Japan, which said that Treasuries “remain an attractive product.”