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BEIJING (MNI)

Foreign investors are likely to further boost purchases of yuan assets, particularly low-risk sovereign and bank bonds, which have certain safe haven attributes, the State Administration of Foreign Exchange said.

"Foreign capital is still at the position-building stage in terms of allocating to yuan bonds and cross-border inflow will be relatively large," spokeswoman Wang Chunying told reporters on Friday.

A stronger yuan is good for importers and outbound investments and won't change China's approach to managing its balance of payments and current account, Wang added. She attributed the yuan's rebound to the dollar last year to China's solidifying recovery from the pandemic, the normalizing economy and monetary policies.

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