New data from the U.S. Treasury Department reveals a significant strategic shift in China's foreign reserves. In November, China's holdings of U.S. government debt fell to $682.6 billion, down from $688.7 billion in October. This marks the lowest level since the global financial crisis of 2008, underscoring a deliberate move to reduce exposure to U.S. assets.
This divestment occurred against the backdrop of a record-high total foreign ownership of U.S. Treasuries, which reached $9.355 trillion in November. While other major economies increased their stakes—with Japan holding $1.202 trillion, the UK at $888.5 billion, and Canada boosting its holdings by 13% to $472.2 billion—China continued its sell-off.
Concurrently, China is aggressively bolstering its physical gold reserves through major domestic discoveries. In central China, geologists identified a "superlarge" gold deposit in the Wangu gold field in Hunan's Pingjiang County, containing over 1,000 tons of gold worth approximately $85.9 billion. The deposit is located nearly 10,000 feet underground, with 300 tons already confirmed at shallower depths.
Further amplifying this trend, a separate discovery in the Laizhou area of Shandong province has pushed the region's total gold reserves to more than 3,900 tons, representing about 26% of China's entire known gold stash. The exploration, coordinated by the Hunan Mineral Resources Group and utilizing advanced 3D modeling, is framed as a strategic effort to gain more control over real, tangible assets.
Despite the monumental scale of these gold discoveries and the shift in reserve strategy, analysts and official sources, including China's Ministry of Natural Resources, have confirmed no direct impact on cryptocurrency markets. No changes in the prices, liquidity, or institutional activity related to Bitcoin, Ethereum, or other digital assets have been documented following the news.
