(Yicai Global) July 19 -- China’s foreign exchange settlements rose by one-fifth in the first six months of the year, while sales rose six percent, resulting in a surplus of USD13.8 billion, the country’s regulator has announced.
The surplus compared to a deficit of USD93.8 billion over the same period last year, Wang Chunying, spokeswoman for the State Administration of Foreign Exchange said at a press conference. Foreign receipts grew 23 percent annually, while foreign payments rose 17 percent, with a deficit of USD12.1 billion, down 86 percent from last year.
Economic and policy fundamentals closely related to the operation of China's foreign exchange market have remained sound, and conditions are there for cross-border capital flows and forex market operation to remain generally stable, she said.
In terms of policy fundamentals, China will stick to reform and opening up and create favorable conditions for balanced flows of cross-border capital, Wang said, adding that net inflow of cross-border capital associated with foreign investors' securities investment in China tripled in the first half from a year ago.
Foreign investors currently account for less than 3 percent of China's stock market and less than 2 percent of the bond market, which is relatively low compared with that of major developed countries and some emerging economies, meaning there is still ample room for growth in the future.
Editor: William Clegg