(Yicai Global) Jan. 18 -- China reduced its US Treasury holdings by USD12.6 billion to USD1.18 trillion in November last year, according to data released by the US Treasury Department.

Japan, the second largest foreign holder of US Treasuries behind China, also scaled back its stake to USD1.08 trillion in November, marking a monthly reduction of USD9.9 billion.

The total value of US Treasuries held by foreign creditors was USD6.34 trillion as of late-November last year, down from USD6.35 trillion in October.

Bloomberg reported on Jan. 10 that senior Chinese government officials are reviewing the nation's forex holdings and recommended a slowdown or pause in the buying of US government bonds. China's State Administration of Foreign Exchange (SAFE) responded a day later stating that the report may have cited the wrong information source or fake news.

China's government has always managed foreign exchange reserves in line with diversification principles to ensure an increase in the value of its assets, SAFE said. Like other investments, China's holding of US debt is market-based and subject to professional management.