China FX regulator says sound fundamentals will underpin stable reserves

[SHANGHAI] Sound Chinese economic fundamentals will underpin operations in the foreign exchange market and provide a solid basis for stable forex reserves, the State Administration of Foreign Exchange said on Monday.

The regulator said China's foreign exchange reserves rose modestly in May largely due to valuation effects and changes in asset prices.

It warned that there was uncertainty in global political and economic conditions and that volatility in global financial markets could increase, but said the Chinese economy's ability to counteract external shocks had become stronger. 

REUTERS