China advises banks to reduce exposure to US Treasuries amid market volatility

Chinese regulators have formally advised domestic financial institutions to curb their holdings of U.S. Treasuries (U.S. government bonds), according to reports from Bloomberg News on Monday. The guidance, issued on February 9, 2026, targets the exposure of Chinese banks to this major asset class. This policy-driven move in China CN comes as authorities cite concerns over concentration risk and heightened market volatility within the financial sector.

The advisory was issued by the People's Bank of China and the National Financial Regulatory Administration. These regulators framed the guidance as a strategic effort to diversify market risk for financial institutions. By reducing reliance on debt from the United States US, the regulators aim to mitigate potential instability associated with large-scale exposure to a single sovereign asset class.