MNI 5 THINGS: China's FX Reserves Grow Further In December

     BEIJING (MNI) - Following a mild rebound in November, the value of China's

foreign exchange reserves rose further in December, according to data released

Monday by the State Administration of Foreign Exchange (SAFE).

     - FX reserves increased by $11.0 billion to $3.07 trillion in December, up

from $3.05 trillion in October and $3.06 trillion in November, but nevertheless

standing at the third-lowest level for the year.

     - The value of China's FX reserves was bolstered by asset price

fluctuations and foreign treasury bond price increases.

     - Despite December's gain, FX reserves at end-2018 were $67.25 billion

lower than the $3.14 trillion total recorded at end-2017.

     - China is facing external uncertainties, but the domestic economy is

resilient and able to withstand external headwinds, while FX reserves are

expected to remain stable, SAFE commented.

     - The yuan appreciated by 1.12% against the U.S. dollar in December. With

the exchange rate and market expectations generally stable, cross-border capital

flows are expected to remain relatively steady, providing a solid foundation for

the stabilisation of FX reserves, SAFE added.

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

--MNI London Bureau; +44 207-862-7489; email: ukeditorial@marketnews.com

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