MNI 5 THINGS: China's FX Reserve Value Rises 4th Month

     BEIJING (MNI) - Here are the major takeaways from China's February FX

reserves data released by the State Administration of Foreign Exchange on

Thursday: 

     - FX reserves rose for the fourth month to $3.0902 trillion in February,

$2.26 billion more than January's valued at $3.0879 trillion. 

     - The FX reserve value was helped by exchange rate conversions and asset

price fluctuations, according to SAFE.

     - China's FX reserves are expected to remain generally stable; China can

maintain the overall stability of cross-border capital flows and keep its

balance of payments in equilibrium, SAFE said. 

     - The central bank does not appear to have intervened substantially in FX

markets in February, suggesting that the yuan is not facing much downward

pressure at present, Capital Economics said in a note sent to MNI. However, with

the economy likely to slow further over coming months and interest rates set to

fall, the currency will probably come under renewed downward pressure later in

2019, Capital Economics added.

     - The yuan gained 0.28% against the U.S. dollar in February, according to

Wind Information.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

[TOPICS: MAQDS$,M$A$$$,M$Q$$$,MT$$$$]