China's forex reserves rise unexpectedly to $3.21 trillionStaff Writer | July 8, 2016
China's foreign exchange reserves increased $13.43 billion in June from the previous month to $3.21 trillion, central bank data showed.
Chinese economy International capital may flow back to emerging markets
Chinese investment in foreign stocks and bonds had good yields, and Brexit did not bring panic to the market nor massive purchases of the U.S. dollar, Guan said.
International capital may flow back to emerging markets including China if the global forex market calms down with lower hedging demand, whereas the yuan will see greater fluctuation if market sentiment deteriorates, raising the pressure of capital outflow, Guan said.
China's reserves, the largest in the world, fell by $27.9 billion to $3.19 trillion U.S. in May, the lowest level in nearly five years. ■