(Yicai Global) Feb. 16 -- China reduced its US debt holdings by USD12.2 billion to USD1.07 trillion in December last year, but remained the second-largest US creditor, according to data released today by the US Department of the Treasury.

Japan, the largest US creditor, also cut its holdings in December, reducing them by USD23 billion to USD1.3 trillion. However, the overseas holdings of US Treasury bonds still rose by USD5.8 billion in the month, pushing the level to a record high. This was mainly because the third-largest creditor, the UK, increased its US debt holdings by USD25.4 billion to USD647.4 billion.

Ireland raised its US debt holdings by USD4.5 billion to USD334.3 billion last December, and remained the fourth-largest US creditor. Luxembourg reduced its holdings by USD10.4 billion to USD323.5 billion in December, making it the fifth-largest US creditor.

Editor: Tom Litting