Foreign exchange market starts the year strong

Data from the State Administration of Foreign Exchange on Wednesday showed that foreign investors bought a net worth of $27.7 billion in onshore stocks in January, marking the highest single-month reading on record.

According to the administration, in US dollar terms, the amount of foreign exchange settlement and sales by banks was $175.3 billion and $172.8 billion, respectively, in January, with a surplus of $2.5 billion.

During the same period, the amount of cross-border receipts and payments by non-banking sectors was $445.7 billion and $410.5 billion, respectively.

In January, China's cross-border capital flow maintained stability, with a basic balance between supply and demand for foreign exchange, said Wang Chunying, deputy head and spokesperson of the administration.

The foreign exchange market has gotten off to a good start this year, with stable expectations from market entities, as well as various tradings in a rational and orderly manner, Wang said.

Looking forward, the sound long-term fundamentals of the Chinese economy remain intact, Wang added.

The IMF predicted that China's economy will still be a major engine for driving global economy and the attraction for renminbi assets will further be promoted, building a solid foundation for a stable cross-border capital flow.