AsianFin -- China sharply reduced its holdings of U.S. Treasuries in July, selling $25.7 billion, bringing its total holdings to $730.7 billion, the lowest level since 2009, according to the U.S. Treasury Department’s Treasury International Capital (TIC) report released Thursday.

In contrast, the other top overseas holders of U.S. debt, Japan and the U.K., continued to increase their positions. As of July, Japan held $1.1514 trillion, up $3.8 billion from the previous month, maintaining a trend of steady purchases this year. The U.K. held $899.3 billion, a significant increase of $41.3 billion from June.

The TIC report highlights a divergence in foreign demand for U.S. debt, with China reducing exposure while Japan and the U.K. continue to invest.