(Bloomberg) -- China’s foreign-currency holdings rose for a second month amid potential capital inflows and positive valuation effects to the highest level in more than a year.
- Reserves climbed to $3.119 trillion in June from $3.101 trillion in the previous month, the People’s Bank of China said Monday
Key Insights
- The reading beat the median estimate of $3.110 trillion in a Bloomberg survey of economists
- “There are more inflows” of capital than outflows, as more A shares are included in MSCI and more RQFII quotas are granted, said Iris Pang, an economist at ING Bank NV in Hong Kong
- Foreign investors bought at least 74.7 billion yuan ($10.8 billion) or more of Chinese bonds in June, according to Bloomberg calculations
- U.S. long-term Treasury yields dropped and the dollar weakened during the month, both pointing to a positive valuation effect
(Updates with size and scope. An earlier version corrected the date of release.)
