China’s external financial assets reached a record high of $9.79 trillion by the end of June, according to recent official data.
Xinhua reported that the State Administration of Foreign Exchange revealed that external financial liabilities exceeded $6.8 trillion at the same date, resulting in net external assets of nearly $2.99 trillion.
Of the total external financial assets, reserve assets amounted to $3.45 trillion, representing 35 percent of the overall total, while direct investment assets were recorded at $3.02 trillion, accounting for 31 percent.
In terms of external liabilities, direct investment liabilities approached $3.49 trillion, making up 51 percent of the total, whereas portfolio investment liabilities were nearly $1.86 trillion, or 27 percent of the total.
Read more: China’s international trade reaches $585.2 billion in August, 4 percent YoY growth
Increase in foreign exchange reserves
Additionally, as of the end of August, China’s foreign exchange reserves stood at $3.2882 trillion, showing an increase of $31.8 billion, or 0.98 percent, from the end of July, according to recent official data.
Consistent stability in reserves
The State Administration of Foreign Exchange noted that China’s reserves have remained above $3.2 trillion for nine consecutive months. The administration also mentioned a decline in the U.S. dollar index and an overall rise in global financial asset prices last month, influenced by macroeconomic data and expectations regarding monetary policies in major economies.
Factors behind increase
Furthermore, the administration highlighted that the rise in China’s foreign exchange reserves in August was driven by a mix of currency translation effects and fluctuations in asset prices. They also emphasized that China’s economic performance is generally stable, with a sustained long-term growth trajectory expected to bolster the stability of the country’s foreign exchange reserves.
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