China to Stick With US Bonds - or Will They?

Earlier this week, Chinese officials commented that they will continue to buy US Treasury bonds, because they have no other viable vehicles to park their cash.

From the Financial Times:

Luo Ping, speaking at the Global Association of Risk Management’s 10th Annual Risk Management Convention, said: “Except for US Treasuries, what can you hold?” he asked. “Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.”

Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”

Are Mr Luo's comments to be taken at face value?

Or is it possible that he is giving the US, and the rest of the world, a head fake, as the Chinese quietly diversify away from US Treasuries?