China looks into FX risks

China is currently looking into probable risks to its foreign exchange reserves because outbound investment has shadowed foreign investment inflows, as a statesman for the Ministry of Commerce informed on Friday.

Rapid ascends in outbound direct investment have driven worries over increased pressure on the country’s foreign exchange reserves as well as external payments.   

Currently, financial analysts are studying whether it will generate evident short-term risks. Experts are also considering whether we should take some urgent regulatory measures in order to control risks or not.

Chinese non-financial ODI soared 61.9% during the January-May period to 479.26 billion Yuan, as the ministry announced.

FDI inflows edged up 3.8% in January-May year-on-year, hitting 343.55 billion Yuan.

In early 2015, the ministry got down to releasing Yuan-denominated FDI as well as ODI data, along with equivalent greenback figures based on its own conversion.

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