Q: The foreign exchange reserves data recently disseminated by the People's Bank of China show that China's foreign exchange reserves for November 2017 rose by USD 10.1 billion month-on-month. Could you explain such a rise in foreign exchange reserves? What will be the future trends in foreign exchange reserves?

A: As at the end of November 2017, China posted USD 3.1193 trillion in foreign exchange reserves, up by USD 10.1 billion or 0.3% month-on-month, marking the tenth consecutive month of increases.

In November, China's cross-border capital flows and trading behaviors of domestic and foreign market participants remained stable and balanced; the global financial markets went through slight fluctuations, the foreign exchange rates of major non-USD currencies rose and the asset prices changed, thus leading to the rise in China's foreign exchange reserves.

Since the beginning of this year, China's economy has developed steadily with a remarkable momentum for growth, restructuring has gone deeper, the shift between new and old dynamics has sped up, and the quality and benefits have kept increasing, providing a strong boost to more stable and balanced cross-border capital flows. The robust balance of payments has provided a solid guarantee for the continuous and stable recovery of foreign exchange reserves.

Looking ahead, the success of the 19th CPC National Congress has strengthened the confidence of domestic and foreign market participants in China's economic development, indicating stronger foundation and conditions for China to sustain stable economic development with a strong momentum for growth. Along with the deepening of the interest rate and foreign exchange rate market reforms, market expectations will be improved, suggesting the foundation for the equilibrium of the balance of payments and stable cross-border capital flows will be solidified, which will be favorable for the overall stability of foreign exchange reserves.