MNI Data Impact: China's Forex Reserves Increase for 5th Month

     BEIJING (MNI) - Here are the main takeaways from the data on China's March

foreign exchange reserves released by the State Administration of Foreign

Exchange on Sunday:

     - Total value of FX reserves rose for the fifth month to $3.0988 trillion

by the end of March, $8.6 billion more than $3.0902 trillion on Feb 28.

     - The value of FX reserves rose because of changes in exchange rates and

asset prices, SAFE said in the statement. Though the U.S. dollar index rose

moderately, pries of China's financial assets increased following positive

development in the Sino-U.S. trade talks, the adjustment of European and U.S.

central banks' monetary policies and the uncertainty of Brexit, SAFE said.

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

economic growth will stabilise in a reasonable range, and the flexibility of

yuan will strengthen, SAFE said.

     - The fifth monthly gain in the FX reserves' value confirmed a gradual

capital inflow to China, Huatai Securities wrote in a report. The broker remains

"firmly optimistic" about yuan assets, saying capital inflow will benefit

growth.

     - The yuan depreciated 0.5% against the U.S. dollar in March, according to

Wind Information.

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

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

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