MNI DATA IMPACT: China FX Reserves Rebound on Valuation Effect

     BEIJING (MNI) - China's FX reserves were higher in August, reversing July's

fall. Here are the key points from data by the State Administration of Foreign

Exchange on Saturday:

     --FX reserves rose $3.5 billion to $3.1072 trillion in August, compared to

July's $15.5 billion decline. It was $34.5 billion, or 1.1%, more than the value

at the beginning of this year, according to SAFE.

     -- The moderate gain was mainly due to exchange rate conversion and asset

price fluctuations: the dollar index rose slightly, along with rising bond

prices of major countries.

     -- China's FX reserves are to remain stable given the "large capacity,

strong driver and sufficient vitality" of its economy, SAFE spokeswoman Wang

Chunying said in a statement.

     -- The yuan lost 3.77% against the U.S. dollar in August, compared with

July's 0.25% lost, Wind data showed.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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