The much-speculated Chinese campaign to undermine the dollar by dumping Treasuries is a myth, expert says

• China's holdings of US government bonds have declined steadily in recent years, hitting the lowest levels since 2009 this summer.
• But that doesn't necessarily mean Beijing is deliberately shifting away from dollar assets, according to strategists at Lloyds Bank.
• The drop in UST holdings reflects other factors such as valuation changes, diversification into agency debt and China's efforts to stabilize its currency, they said.

China's holdings of US government bonds recently hit a 14-year low. The No. 2 foreign owner of Treasurys has been steadily trimming its portfolio for years.