Rise in Asset Prices Drives Increase in China's Foreign Reserves for Seven Straight Months, SAFE Says
Xu Wei
/SOURCE : Yicai
Rise in Asset Prices Drives Increase in China's Foreign Reserves for Seven Straight Months, SAFE Says

(Yicai Global) Sept. 8 -- China's cross-border capital flow and supply and demand of foreign exchange market kept in balance last month; in international financial market, assets price rises, driving increase of foreign reserve scale, said the State Administration of Foreign Exchange (SAFE) on Sept. 7.

China's foreign reserves reached USD3.1 trillion last month, USD10.8 billion higher than the month before, early data posted on the official website of the People's Bank of China (PBOC) yesterday shows. This marks the first growth sustained over seven straight months since June 2014. 

China's economy has maintained its stability and developed in a favorable direction this year. In-depth structural regulation has yielded main indexes that beat expectations, and fostered a steadier macro economy. The international financial market is relatively stabilized, and cross-border capital flow have returned to a stable level; supply and demand of foreign exchange market is balancing, and the yuan exchange rate is holding stable, SAFE said.

While supply side structural reform advances and transformation, upgrading and kinetic energy conservation accelerates, active factors supporting rapid growth will keep strengthening, and the trend of China's economy toward stability and a favorable outlook will develop both in scope and in depth. As financial system reform further deepens and financial openness expands, the foundation for overall stability of China's cross-border capital flows will be firmer, and the foreign reserve scale will hold to a reasonable range, SAFE said.

Special Drawing Rights (SDR), China's foreign reserves stood at 2.19 trillion SDR, about 1.08 billion SDR lower than the previous month, PBOC data show.

Gold reserves in official reserve assets by the end of August were USD77.7 billion and USD75billion by the end of July. Gold reserves were 59.24 million ounces by the end of last month to tie with the end of July.

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Keywords: Forex , SAFE