(Bloomberg) -- China's foreign-currency holdings rose for a second month amid potential capital inflows and positive valuation effects, hitting the highest level in more than a year.
- Reserves climbed to $3.119 trillion in June from $3.101 trillion in May, the People's Bank of China said Monday
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- That was higher than the median estimate of $3.110 trillion in a survey of economists
- The value of reserves rose due to a weaker dollar and higher international financial asset prices, and the stockpile will continue to be stable as the economy becomes more resilient and sustainable, the State Administration of Foreign Exchange said in a statement
- “The temporary trade truce has eased the RMB depreciation pressure in near term, while the medium-term outlook is contingent on the outcome of trade talks and China's policy responses,” Liu Li-Gang, chief China economist at Citigroup Inc. in Hong Kong, wrote in a note, referring to the yuan by its formal name
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- Foreign investors bought at least 74.7 billion yuan ($10.8 billion) or more of Chinese bonds in June, according to Bloomberg calculations
--With assistance from Tomoko Sato.
To contact Bloomberg News staff for this story: Kari Lindberg in Hong Kong at klindberg13@bloomberg.net;Yinan Zhao in Beijing at yzhao300@bloomberg.net
To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, James Mayger
©2019 Bloomberg L.P.
With assistance from Bloomberg
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