国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Markets

What's behind China's slowing forex reserves?

(Xinhua) Updated: 2013-01-11 15:54

BEIJING - China has accumulated the world's largest holding of foreign exchange reserves on the back of trade booms and cash inflows. But the era of rocketing growth may be drawing to an end.

The People's Bank of China, or the central bank, said Thursday that the nation's foreign exchange reserves had hit $3.31 trillion by the end of 2012, ensuring the fund kept its place as the world'd biggest of its kind. But the annual increase in 2012 was only about $130 billion, the smallest since 2004.

Surging exports and consistent inflow of foreign investment have driven China's foreign reserves on the fast lane in the past decade. China overtook Japan as the world's largest holder in 2006, and its annual increase hit a record high of $460 billion in 2007. However, the growth rate has sharply slowed since last year.

The slowdown was due to the country's more balanced trade, said Lian Ping, chief economist of the Bank of Communications. China's current account surplus accounted for 10 percent of its Gross Domestic Product in 2007. Last year, the proportion fell to less than three percent, he noted.

The slowing trade surplus and the changing expectations for the yuan's exchange rates amid a fluctuating global financial situation explain China's slowing foreign reserves, Lian said.

While its growth rate is slowing, China's trade surplus registered an increase of 48.1 percent in 2012 from the same period a year before, according to an announcement by the General Administration of Customs on Thursday.

With the trade surplus and net inflow of Foreign Direct Investment still big, the foreign reserves increased only $130 billion, which indicate the capital and financial account has cash outflows, said Liu Dongliang, a senior researcher with the China Merchants Bank.

According to the State Administration of Foreign Exchange, China's capital and financial account accumulated $85.4 billion of deficit in the first three quarters of 2012, compared with a surplus of $234.1 billion in the same period a year earlier.

Analysts said corporate and individuals' growing overseas investment also contribute to the slowing reserves.

According to the SAFE, China's non-financial sector invested $52.5 billion in overseas assets in the first three quarters of 2012, an increase of 29 percent year-on-year.

Zhao Qingming, a China Construction Bank economist, said the slowdown in its foreign reserves is entirely expected by China, that it lessens pressure for the yuan's appreciation and is significant for maintaining stable exchange rates.

Liu Dongliang added that the fast growth of foreign exchange reserves has drawn to an end. The economist predicted slow growth alternating with mild contraction for the future.

Hot Topics

Editor's Picks
...
会泽县| 平顺县| 漯河市| 巩义市| 柳河县| 临漳县| 华池县| 黄平县| 汝南县| 阳泉市| 洛扎县| 舞钢市| 邯郸县| 连平县| 二连浩特市| 新巴尔虎右旗| 宜丰县| 鲜城| 老河口市| 乌拉特前旗| 丰宁| 监利县| 肃宁县| 罗田县| 本溪| 景德镇市| 布尔津县| 修水县| 阜康市| 乌兰察布市| 延川县| 东丰县| 郓城县| 临沧市| 南开区| 南陵县| 揭东县| 柞水县| 武清区| 顺昌县| 周口市|