Not correct... It's a well-known fact that China transacts a large proportion of its treasury purchases through the UK. See here, for example: http://www.ft.com/cms/s/0/7956362e-4437-11e0-931d-00144feab49a.html If you take the Mar 2011 figure, the increase in purchases by the UK more than offsets the decrease in Chinese purchases. If you look at the total UK & China net flows for the past 5 months, it's virtually 0, from my rough calculation.