Chinese investors sold record amounts of U.S. stocks and bonds in May.

According to data released by the US Treasury Department, Chinese funds disposed of long-term securities worth a net $42.6 billion, consisting of Treasury, agency, corporate and other bonds, as well as stocks.

Global X Management Co. Investment strategist Billy Leung said sales in the first five months of this year reached an all-time high for the January-May period with $79.7 billion. He emphasized that Chinese investors may have sold American securities to reduce risk due to uncertainty about the US presidential election.

Leung also expressed "possible political influence to reduce US dollar holdings."

More than half of the sales were in Treasury securities, followed by agency debt and stocks.

China is one of the largest foreign holders of Treasuries, and the flow of those bonds is closely watched by bond investors and geopolitical strategists alike.