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China's massive sell-off of US securities

Right! Let’s delve into China's massive sell-off of US securities, India's alarming wealth disparity, and the ripple effects of ultra-low interest rates. Why should we do this?

Well, there is a continuous shift in global dynamics as economies evolve, so understanding the intricate ties between nations has become imperative. The decision by Chinese citizens to sell off US securities carries broader implications for the global market. Similarly, India's wealth gap is a pressing concern that impacts its social fabric and global economic stature. And the consequences of prolonged ultra-low interest rates? They stretch beyond just financial metrics, influencing everything from consumer behaviour to investment decisions.

Let's unpack these issues and shed light on their broader repercussions in today's interconnected world.

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1. China sell the most US securities in four years

Source: Bloomberg

In August, Chinese investors sold the highest amount of US bonds and stocks in four years, totaling $21.2 billion, mainly in Treasuries and US equities. This move raised questions about China's intent to strengthen its financial reserves to protect a declining yuan.

Data from the US Department of the Treasury, released on Wednesday, also showed a decrease in China's agency debt holdings. This happened as the yuan's value hit its lowest against the dollar since the previous November, leading Beijing to instruct state-owned banks to intervene more in the currency market.

Coming up:

2. India has grown into one of the world’s most unequal societies

3. The impact of ultra-low interest rates on the money supply

4. The great healthcare spending lottery

5. Globalisation boosted profit margins

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