By Linda Young

Beijing, China

China has cut its holdings of United States debt in response to Standard & Poor's downgrading of the credit of the U.S. government in August.

S&P downgraded the U.S.'s credit rating from triple A to double A+ over concerns about federal budget deficits.

The latest data from the U.S. Treasury shows that China sold $36.5 billion in U.S. Treasuries in August, reducing the amount of U.S. debt it holds to $1,137 billion. That is the lowest level of U.S. Treasuries China has held in a year.

China is the largest foreign buyer of U.S. Treasuries.

A few other countries, including Hong Kong, Singapore and Taiwan, have also reduced their holdings of U.S. debt.

However, investors, particularly those in Japan, the United Kingdom, Switzerland, Japan and the Caribbean, have increased purchased of U.S. Treasuries because investors there still view U.S. government securities as a safe investment haven.

World - China Cuts Its Holdings of United States Debt | Global Viewpoint