Last August, investors in China sold US bonds and stocks at the highest pace in four years, raising speculation that the authorities may have moved to strengthen their financial resources to defend the weak yuan.
The bulk of the $21.2 billion sales were in US Treasuries and stocks, with funds in the Asian country also reducing their holdings of agency debt (bonds issued by government-linked companies), according to US Treasury Department data released on Wednesday.
In August, the yuan traded in mainland China fell to its lowest level against the dollar since last November, prompting Beijing to ask state-owned banks to step up intervention in the currency market.
