China’s holdings fell to $590.7 billion at the end of August, down from $618 billion in July. …reports Asian Lite news Desk
China’s holdings of US Treasury securities continued to decline in August, while India recorded its third consecutive monthly increase, according to the latest data released by the US Treasury Department.
China’s holdings fell to $590.7 billion at the end of August, down from $618 billion in July. The figure marks a substantial drop from the $699.7 billion held in August 2025, representing a decline of about $109 billion over 12 months.
India, meanwhile, increased its holdings to $219.7 billion in August from $202.6 billion in July, adding approximately $17.1 billion in a month.
The rise extends a recovery that began after India’s holdings dropped to $181 billion in April. They increased to $181.3 billion in May, $186.4 billion in June and $202.6 billion in July before reaching the latest level.
India’s holdings are now broadly in line with the $219.4 billion recorded in August last year.
The contrasting trends have narrowed the gap between China and India’s US Treasury holdings to around $371 billion, compared with approximately $480 billion a year earlier.
India ranked 14th among major foreign holders of US Treasury securities in August, positioned behind Hong Kong, which held $261.5 billion, and ahead of Norway at $214 billion.
Japan remained the largest foreign holder, with $1,068.3 billion, although its holdings declined from $1,103.9 billion in July. The United Kingdom ranked second, increasing its holdings to $1,009.5 billion from $998.3 billion.
China ranked third, followed by Belgium with $490.5 billion, Canada with $464.6 billion, the Cayman Islands with $463 billion and Luxembourg with $448.2 billion.
The Treasury’s latest Treasury International Capital (TIC) report also recorded a net inflow of $199.8 billion in August. Foreign residents increased their holdings of long-term US securities through net purchases of $300.7 billion during the month.
However, foreign residents reduced their holdings of US Treasury bills by $47.8 billion, the department reported.
The Treasury cautioned that its country-level figures might not precisely reflect the actual ownership of securities. The data are collected primarily from US-based custodians and broker-dealers, meaning securities held in overseas custody accounts may not always be attributed to their ultimate owners.
Consequently, the figures should not automatically be interpreted as a complete account of investment decisions made by individual countries.
The next TIC report, covering September, is scheduled for release on November 18.
The latest figures highlight the diverging movements in China’s and India’s reported US Treasury holdings, with India recovering from its April low while China’s holdings remain significantly below their level a year earlier.
