China's Forex market remains steady in May

BEIJING -- China's foreign exchange market remained generally stable in May despite continued volatility and adjustments in international financial markets, according to the State Administration of Foreign Exchange.

Foreign-related transactions remained active last month, with cross-border receipts and payments by enterprises, individuals and other non-banking sectors totaling $1.5 trillion, up 22 percent year-on-year, said Li Bin, deputy head and spokesperson of the administration.

The country's foreign exchange market recorded transactions worth $3.4 trillion last month, broadly unchanged from a year earlier, Li said.

Cross-border capital inflows remained largely stable in May, with enterprises, individuals and other non-banking sectors recording net inflows of $62.5 billion, edging up 1 percent from the previous month.

Banks posted a Forex settlement surplus of $35.8 billion, down 11 percent month-on-month, Li said.

By major channel, trade in goods remained the main source of net capital inflows, trade in services continued to register a deficit, dividend payments by foreign-funded enterprises increased seasonally, and foreign investors made overall net purchases of domestic stocks and bonds, Li said.

Foreign exchange market expectations remained stable in May, with various market entities showing steady willingness to settle and purchase foreign exchange, and related transactions conducted in an orderly manner based mainly on actual demand, Li said.