China’s forex market remains steady in May – Macau Business

[TITLE>China’s Foreign Exchange Market Shows Stability in May Amid Global Financial Volatility

China’s foreign exchange market maintained overall stability in May despite ongoing volatility and adjustments in international financial markets, according to the State Administration of Foreign Exchange.

Foreign-related transactions remained robust last month, with cross-border receipts and payments by enterprises, individuals, and other non-banking sectors totaling $1.5 trillion, representing a 22 percent year-on-year increase, said Li Bin, deputy head and spokesperson of the administration.

The country’s foreign exchange market recorded transactions worth $3.4 trillion last month, remaining broadly in line with the previous year’s figures, Li said.

Cross-border capital inflows remained relatively stable in May, with enterprises, individuals, and other non-banking sectors recording net inflows of $62.5 billion, an increase of 1 percent from the previous month.

Banks posted a foreign exchange settlement surplus of $35.8 billion, down 11 percent month-on-month, Li said.

By major channel, trade in goods remained the primary source of net capital inflows, while trade in services continued to register a deficit. Dividend payments by foreign-funded enterprises increased seasonally, and foreign investors made overall net purchases of domestic stocks and bonds, Li said.

Foreign exchange market expectations remained stable in May, with various market participants demonstrating steady willingness to engage in foreign exchange transactions, and related activities proceeding in an orderly manner based primarily on actual demand, Li said.

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