(Yicai Global) Feb. 13 -- China has become Japan's largest creditor after investing a total of JPY11.2 trillion (USD99.8 billion) in Japanese bonds during 2016, according to the Japanese Ministry of Finance.
Chinese investors began diverting their funds from the US to Japanese treasury bonds around May 2016, and last year's investments mark a new high since 2005, the National Business Daily reported. The bond investments included JPY3.95 trillion in medium- and long-term bonds, and JPY7.25 trillion short-term.
China's American bond holdings declined strongly after the purchase of Japanese bonds increased. Chinese investors' US debt holdings fell around 15 percent to USD1.05 trillion in November, down from USD1.24 trillion earlier in the year.
Japan has also significantly lowered its holdings in US bonds. Its investors unloaded JPY2.26 trillion (USD20 billion) worth of American bonds in December, making the largest monthly net sale since May 2013.