(Yicai Global) Oct. 21 -- China's cross-border capital flows are expected to remain stable as China's economic growth continues to stay relatively strong, Ms. Wang Chunying, spokesperson for the State Administration of Foreign Exchange and director-general of the Balance of Payments Department, said during a press conference today.
China's overall robust financial system, the current accounts' surplus and the ample reserves of foreign exchange all contribute to stable cross-border capital flows.
The Chinese yuan central parity rate against the US dollar has slid to the lowest level in more than six years. Today the yuan-dollar exchange rate slumped 247 points to 6.76. This has aroused speculation over whether large amounts of foreign capital are flowing out of China.
With improved transparency of the formation mechanism of the yuan exchange rate, market sentiment will stabilize, and the regulation of foreign balance of payments will also become more stable. The positive factors that have emerged this year will continue to enhance the future balance of foreign currency supply and demand, Ms. Wang said.
Although more foreign currency was purchased by Chinese individuals in the third quarter than in the second quarter, it was still less than the first quarter and than in the same period last year, she said.