BEIJING, Oct 14 (Reuters) - China's massive increase in foreign exchange reserves in the third quarter was driven to a significant extent by changes in the value of its investments, with the euro's rise adding more than $80 billion, the foreign exchange regulator said on Thursday.
But the State Administration of Foreign Exchange also noted that capital inflows were placing "relatively big pressure" on China and that the country would try to improve the yuan's exchange rate mechanism to block out hot money inflows.
China said on Wednesday that its foreign exchange reserves soared $194 billion in the third quarter, a record quarterly increase. (Reporting by Zhou Xin, Aileen Wang and Simon Rabinovitch; Editing by Ken Wills)