Global Times – China’s foreign exchange reserves reached $3,346.4 billion at the end of November, up $3 billion from the end of October, marking a 0.09 percent increase, according to data released by the State Administration of Foreign Exchange (SAFE), which noted that China’s economy remains stable, supporting steady forex reserves.
The nation’s gold holdings increased by 30,000 ounces month-on-month to 74.12 million ounces at the end of November, the 13th consecutive month of accumulation, according to the Securities Times.
In November, influenced by macroeconomic data from major economies and monetary policy expectations, the US Dollar Index declined, while global financial asset prices showed mixed movements, the SAFE said.
It added that the combined effects of exchange rate adjustments and fluctuations in asset prices contributed to the modest growth in China’s foreign exchange reserves.
China’s economy has maintained overall stability and steady progress, providing a solid foundation for the relatively stable level of foreign exchange reserves, the administration noted.
Wen Bin, chief economist at China Minsheng Bank, told the Global Times on Sunday that China’s economic growth is supported by various factors. In the foreign trade sector, outcomes achieved by the Chinese and US delegations during economic and trade talks in Kuala Lumpur at the end of October support the stability of bilateral trade, he noted.
In the investment sector, the China Securities Regulatory Commission announced on October 27 that it has rolled out a work plan to improve its system for qualified foreign institutional investors, as Wen said it will implement a green channel for allocation-oriented foreign capital, which is expected to enhance the attractiveness of Chinese markets to overseas investors.
Regarding gold prices, Wen pointed out that expectations of Federal Reserve rate cuts combined with easing geopolitical tensions weakened safe-haven demand, preventing gold from surpassing October’s high. However, he noted that the long-term fundamentals supporting gold price growth remain intact.
