Sino-Japanese relations remain sensitive to the occasion, the Japanese Finance Ministry yesterday released the latest data show that in September China’s holdings of Japanese government bonds consecutive month. If you include the amount of reduction in August, the Chinese have actually purchased this year Japanese government bond clearing.

September the yen continued to hit new high China may continue to reduce the reasons for Japanese government bonds; but also insisted that the stakeholders may be other sensitive reasons consecutive month, China’s holdings of Japanese government bonds.

Obviously, China in October to 438 billion won South Korea bond holdings, the first 10 months of this year has been accumulated holdings of 3.716 trillion won South Korean government bonds.

As of yesterday, 19 points, 91.18 yen against the U.S. dollar reported, 0.6% appreciation of the yen, the yen on reported 8.19 yuan, 0.19% appreciation of the yen.

Second bond reduction on

According to the Japanese Finance Ministry data, China in September sold a net 144.9 billion yen in Japan bonds and notes, also sold a net 624.3 billion yen of Japanese short-term bonds, the two combined total assets of 769.2 billion yen.

This is the second consecutive month, China’s holdings of Japanese government bonds. August of this year, China has sold a 2.02 trillion yen suddenly Japanese government bonds, is overweight in Japan for 7 months after the first reduction of debt, and since 2005 a record the biggest monthly reduction record.

Post reporters found that with yesterday’s data, China in August and September for two months is already clearing out all of this year Japanese government bonds purchased.

Based on historical data, 1-4 months of this year, China has bought a net 541 billion yen worth of Japanese government bonds; May, China bought a net 735.2 billion yen again Japanese government bonds; June, this figure dropped slightly to 4567 billion yen, but in July the amount of net debt to buy yen to 583 billion yen again. The first 7 months of this year, China acquired a total of 2.3159 trillion yen in Japan bonds.

According to yesterday’s data, China in August and September sold about two months, a total of 2.7892 trillion yuan of Japanese government bonds.

Currently the parties concerned that the holdings of Japanese government bonds successive Why China?

Obvious that, according to historical data above, the Chinese began earlier this year from substantial holdings of Japanese government bonds, but only started in May this year was speed. But are only separated by two months, the Chinese began to generous reduction.

In this regard, market strategist at Sumitomo Trust & Banking Reiko Seto good financial new network in an interview that the yen may affect China’s holdings of Japanese government bonds. 8 more months to September the yen higher situation, so that as the yen exchange rate of China’s decision to limit holdings of approaching Japanese government bonds.

In order to circumvent the European sovereign debt crisis of the risks, China in May to July this year, with large current account surpluses of Japan, being a large-scale investment. However, since August as the yen against the U.S. dollar has even created a new high in 15 years, so China began to holdings of Japanese government bonds.

This may be true. After all, the dollar index and the yen against the U.S. dollar exchange rate (Editors note: because of China’s foreign exchange reserves denominated in U.S. dollars), China’s action can be described as check out the location accuracy. May started the rapid reduction of holdings of U.S. Treasuries and Japanese government bonds, in June began to turn the dollar index fell, while the dollar index has recently begun to rebound.

Or cooling due to Sino-Japanese relations

However, there are market participants does not endorse this view.

Obviously, this year in May China’s large holdings of Japanese government bonds, the Chinese authorities have come forward expressed the need for this is to adjust the foreign exchange reserves. This year in August, when the Japanese finance minister, asked the Chinese officials peak Naoki Kawasaki substantial holdings of Japanese government bonds to China and “explore”, the Chinese Foreign Ministry has strong response: China’s foreign exchange management has been based on “safety, liquidity, increase the value of “principle, the implementation of diversification strategies, which buy government bonds according to the country to decide.

It seems in this part of the market, China began to holdings of Japanese government bonds in August and the Sino-Japanese relations may cool down on.

At the same time, the Post reporter interviewed yesterday, a joint-stock bank foreign researcher believes that, from a technical point of view, the yen is unlikely to weaken in the short term, and will probably high. It is worth mentioning that, the researcher said that China has no holdings of Japanese government bonds is not afraid to say, because China’s own holdings, while other foreign institutions can also be commissioned to buy.

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