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China's holdings of South Korean Treasury bonds more than doubled in the first half of this year. That's in line with the country's strategy to diversify its foreign exchange reserve.
Official data from South Korea shows the country's bonds held by Chinese investors rose more than 110 percent, to about 3.4 billion US dollars in the first half. That's about a fifth of the total bonds held by foreign investors, a hike from last year's 10 percent.
However, China's holdings of South Korean notes account for little more than 0.1 percent of its total reserves. That's lower than the country's holdings of Japanese bonds worth about 20 billion US dollars. China's foreign exchange reserve diversification is aimed at reducing risks.