China says cross-border cash flows hit turning point in '17

A deliveryman wearing a face mask walks past a display showing symbols for world currencies on the exterior of a bank in Beijing, Thursday, Jan. 18, 2018. Financial regulators in China say cross-border capital flows hit a turning point in 2017 as foreign currency reserve levels stabilized after two years of declines. (AP Photo/Mark Schiefelbein)

Financial regulators in China say cross-border capital flows hit a turning point in 2017 as foreign currency reserve levels stabilized after two years of declines

HONG KONG — China's cross-border capital flows hit a turning point in 2017 as foreign currency reserve levels stabilized after two years of declines, the country's foreign exchange regulator said Thursday.

The supply and demand of foreign exchange "have shifted to a basic equilibrium" thanks to calmer domestic and global market conditions, Wang Chungying, a spokeswoman for China's State Administration of Foreign Exchange, told reporters in Beijing.

China's foreign exchange reserves rose for 11 straight months from January-December, expanding by a total of $129.4 billion last year to $3.1 trillion dollars, Wang said at an annual briefing.

The reserves fell in 2015 and 2016 as the central bank spent other currencies trying to keep the yuan aligned with the dollar. Worries that the Chinese currency would decline had prompted investors to shift money out of the country.

Beijing keeps a big chunk of its foreign currency reserves in U.S. Treasury debt, which is considered safe and easy to trade. Global markets were rattled earlier this month by a report that Chinese authorities were mulling slowing or halting their purchases of Treasuries, citing trade tensions with the U.S.

Reiterating comments by other officials, Wang said that China's purchases were guided by market forces.

China's "investment of foreign exchange reserves in U.S. Treasury bonds is actually market behavior and is professionally managed according to market conditions and investment needs," she said.

You may also like these

Asian markets lower after Wall Street decline

Sep 15, 2016

Asian stock markets were mostly lower Thursday following Wall Street's decline in light trading...

Global markets mixed after Wall Street loss

Dec 23, 2016

Asian markets are mostly lower while Europe has gained in early trading ahead of the Christmas...

Choked by smog, Beijing creates new environmental...

Jan 8, 2017

Officials in Beijing have announced a new environmental police squad to root out illegal burning in...

Chinese delegation open to meeting Trump's team...

Jan 11, 2017

A Chinese official says President Xi Jinping's delegation to the World Economic Forum is open to...

China exports shrink as Trump trade tensions loom

Jan 13, 2017

China's exports fell back into contraction again last month, signaling renewed weakness for the...

Sign up now!

The Financial Capital is your independent source for finance information and advice. We provide insights and offer advice from financial experts so you can make the best decisions.

Contact us: sales[at]thefinancialcapital.com