MNI: China Banks Net FX Sellers From Clients In Feb - SAFE

     BEIJING (MNI) - China banks were net sellers of foreign exchange to clients

in February, reflecting relatively balanced cross-border capital flows,

according to the latest figures from the State Administration of Foreign

Exchange.

     SAFE said Monday that Chinese banks sold a net CNY10 billion to clients in

February, compared with a net purchase of CNY14.9 billion in January. 

     "Supply and demand have remained generally balanced," SAFE said on its

official website.

     As of the end of February, outstanding foreign reserves stood at $3.13

trillion, a decrease of $26.98 billion from January, according to data from the

People's Bank of China. 

     The net position on forex forwards to buy yuan from banks increased CNY11.1

billion to CNY694.4 billion in February, up for the sixth consecutive month, but

lower than CNY73 billion growth in January. The narrower pick-up reflected a

more balanced view on the yuan's trend.

     The foundation for balanced cross-border capital flows remains stable

considering the two-way fluctuations of the yuan, the steady domestic economy

and and the markets' more reasonably diverged expectations on exchange rates,

SAFE said.  

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

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

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