China cut its stockpile of US Treasuries in March, before its trade war with US President Donald Trump escalated, stepping aside from its position as the No 2 overseas holder.

As foreign holdings rose for a third straight month to an all-time peak of US$9.05 trillion in March, China’s stockpile slid to US$765.4 billion, down US$18.9 billion from the previous month and ending an upswing in holdings in the January-February period, according to data released by the US Department of the Treasury on Friday.