MNI DATA IMPACT: China FX Reserves Bounce Back In May

     BEIJING (MNI) - China's FX reserves were higher in May, reversing the fall

seen in April. Here are the key takeaways from data released by the State

Administration of Foreign Exchange on Monday:

     - FX reserves rose by $6.05 billion to $3.1010 trillion in May, up from

April's $3.0950 trillion. 

     - The slight increase was mainly due to exchange rate conversion and asset

price fluctuations, SAFE said. 

     - China's FX reserves are expected to remain stable, as the FX market will

be well supported by healthy economic fundamentals, SAFE spokeswoman Wang

Chunying said in a statement.

     - The yuan lost 2.46% against the U.S. dollar in May, Wind data showed.

Escalating global trade frictions and the uncertainty of Brexit have pushed up

risk aversion in financial markets, and the U.S. dollar index as well as the

global bond index rose accordingly, SAFE said.

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

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

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