Q: The latest foreign exchange reserves data released by the People's Bank of China show that China's foreign exchange reserves for June 2017 went up by USD 3.2 billion month on month. Could you explain why such a change occurs?

A: As at the end of June, China's foreign exchange reserves amounted to USD 3.0568 trillion, up by USD 3.2 billion or 0.11% month on month, representing an increase for the fifth consecutive month.

China's cross-border capital flows sustained stable growth in June, indicating a relative equilibrium between supply and demand of foreign exchange. In the global markets, non-USD currencies appreciated against the US dollar, asset prices fluctuated slightly, the currencies and assets invested with foreign exchange reserves diverged, and foreign exchange reserves rose by a small margin.

In the first half of this year, China's cross-border capital flows and the supply-demand of the foreign exchange market remained balanced, the RMB exchange rate rose steadily and foreign exchange reserves rose by USD 46.3 billion or 1.5% from USD 3.0105 trillion of the beginning of this year.

Looking ahead, China's economic stabilities and certainties will be strengthened. In terms of industry support, development motives, confidence and environment, China's economic performance will remain stable with the good momentum for growth. Alongside further liberalization of the financial market, healthy development of the foreign exchange market, stable market expectations, and the basic equilibrium of cross-border capital flows and the supply-demand of the foreign exchange market, foreign exchange reserves will sustain stability.