China, the largest foreign lender to the U.S., held $1.73 trillion in U.S. securities as of June 30, 2011, according to the annual report issued by the Treasury Department.

Japan maintained its place as America’s second-largest lender, with $1.59 trillion of U.S. securities,

Total foreign holdings of U.S. securities were $12.4 trillion as of the end of June last year.