Q: The latest foreign exchange reserves data released by the People's Bank of China (PBC) show that China's foreign exchange reserves as at the end of August 2017 went up by USD 10.8 billion month on month. Could you brief us on the causes behind such changes in foreign exchange reserves?

A: As at the end of August 2017, China's foreign exchange reserves amounted to USD 3.0915 trillion, up by USD 10.8 billion or 0.4% month on month, recovering 7th-straight month.

In August, China's cross-border capital flows and the supply and demand of its foreign exchange continued to remain balanced. In global financial markets, asset prices rose, driving foreign exchange reserves to grow.

Since the beginning of this year, China's economy has been stable and improved, with deeper structural adjustments and better-than-expected indicators, suggesting the macro-economy has become more stable. The global financial markets have been relatively stable. Cross-border capital flows have been stabilized with a good momentum for growth, the demand and supply of foreign exchange have found an equilibrium, and the RMB exchange rate has remained stable.

Looking ahead, as the supply-side structural reform is advanced, and transformation, upgrades and growth engine shift are further accelerated, positive factors that support the middle and high-speed economic growth and boost the economy to strive toward a medium and high-end level will be strengthened, indicating China's momentum for stable and stronger economic growth will gain ground. Alongside the deeper reform of the financial system, and deepened financial liberalization, the foundation for the stabilization of China's cross-border capital flows will be solidified, which will provide a further boost to maintain a moderate and reasonable size of foreign exchange reserves.