China in October increased its holdings in U.S. Treasury securities for the fourth consecutive month by $23.3 billion to $906.8 billion, said the U.S. Department of Treasury.

China remains the largest foreign holder of U.S. Treasury securities, ahead of Japan, which increased its holdings by $12.8 billion in October to $877.4 billion. Total holdings of Treasury securities by all foreign countries amounted to $4.3 trillion, an increase of 1.1 percent from the previous month.

China resumed net purchases in July after two consecutive months of net sales, which should help dismiss worries that Washington's largest creditor was moving away from dollar assets.

Economists say there is a wide investor recognition of good values in the U.S. assets despite the sluggish economic recovery in the country.

For China, there are two ways to fend off risks about its asset safety—slow accumulation of foreign exchange reserves and diversifying government bonds from other countries, said Zhang Bin, a senior researcher at the Chinese Academy of Social Sciences.