MNI: China 2017 Records Surplus for Current and Financial Acct

--China Current Account Surplus Equal To 1.3% of GDP

     BEIJING (MNI) - China's State Administration of Foreign Exchange on

Thursday said both the current account and non-reserve financial account

recorded surpluses in 2017.

     China's current account surplus fell to $164.9 billion in 2017, accounting

for 1.3% of GDP, compared with a $196.4 billion surplus in 2016, SAFE said.

     The surplus for the consumer goods trade was $476.1 billion in 2017, 3%

lower than that in 2016, SAFE said. The deficit for services trade increased 14%

y/y to $265.4 billion in 2017.

     The non-reserve financial account turned to a $148.6 billion surplus in

2017, compared with a deficit of $416.1 billion in 2016. SAFE attributed the

surplus to stable outbound investment and increasing foreign investment in 2017,

seen in the the increase of $435.3 billion in foreign debt.

     SAFE also said the country's foreign-exchange reserves rose by $93 billion

in 2017. The People's Bank of China had previously reported an increase in forex

reserves of $129.4 billion during in 2017, but the SAFE figure excludes

valuation effect and is a better gauge of real money flows.

     SAFE expected the balance of payment will continue to remain generally

stable and the current account will continue to record a surplus as the global

economy continues to revive, domestic economy operates steadily and well, and

reform measures deepen.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MI$$$$,MT$$$$]