As a major overseas holder of Fannie Mae and Freddie Mac's bonds, people are worried that China would face huge risks after the US government announced plans to phase out the two housing mortgage giants on Feb 11.

According to calculations by CBN, China continuously reduced its holdings of long-term US agency bonds between July 2008 and December 2010. The total amount of net selling hit $82.9 billion – an average of $2.76 billion every month.