China's US Treasury holdings hit record

China kept buying US Treasury securities in May, pushing its holdings to a record level of $1.316 trillion, according to US government data.

The largest holder of Treasury securities increased its holdings by $25.2 billion in May, data released by US Department of Treasury showed, while Japan, the second largest holder, cut its holdings to $1.11 trillion, Bloomberg reported.

China's holdings grew $151.9 billion from last May, since when China only decreased holdings for four times.

US Treasury securities remained competitive and safer than other government bonds as the US is world's largest economy and a stronger dollar could be expected amid signs of the country's economic recovery, said Chinese observers.