Slide in reservesreported

China's foreign exchange reserves slid the most in at least nine years in January, Reuters reported yesterday, citing an unidentified person "familiar with the situation".

Analysts said outflow of foreign capital to replenish liquidity in the financial system of developed economies, as well as the rumor that the yuan would depreciate in January, are potential causes if the country's foreign exchange reserves really did drop that much.

The Reuters report did not disclose the exact amount of declining reserves, but said the decline was partly due to the US dollar's appreciation and withdrawal of capital by foreign companies and investors hurt by the financial crisis.