China’s Cross-border Capital Flows Maintain Overall Stability in May: SAFE

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China’s State Administration of Foreign Exchange (SAFE) has highlighted ongoing stability in China’s cross-border capital flows following the release of a raft of official data for May.

“China’s cross-border capital flows remain stable overall, and the bank forex settlements and balance of payments have both maintained a surplus,” said SAFE official Wang Chunying (王春英).

In May China posted a bank forex settlement surplus of USD$1.5 billion, while the non-bank balance of payments surplus was $7.7 billion.

China’s foreign reserves stood at $3.1278 trillion at the end of May, for an increase of $8.1 billion compared to the end of April.

The goods trade surplus in May was $38.3 billion, for a year-on-year rise of 97%, while the direct investment surplus was $5.5 billion, on par with the same period last year.

“At present, there are still unstable and uncertain factors in the external environment,” said Wang. “However, China’s coordination of pandemic control has proven effective, as have policies and measures to stabilise economic growth.

“The momentum of economic recovery is accelerating, which has helped to maintain the stable operation of China’s forex market and balance of payments.”