China’s forex reserves rise to US$3.112 trillion in June

China’s foreign exchange reserves rose less than expected in June as the yuan strengthened and global asset prices rebounded amid a recovery in economic sentiment.

Economists polled by Reuters had expected the country’s reserves to rise by US$18.31 billion to US$3.120 trillion.

Foreign inflows into Chinese stocks and bonds have picked up recently as investors bet on an economic rebound.

Strict capital controls have also largely helped China keep outflows under control over the past year despite the shock from the coronavirus outbreak, a prolonged trade war with the United States and weakening economic growth.