China's foreign exchange reserves stood at $3.44223800 trillion (about 5,368.8586 trillion won) at the end of May.
According to Chinese media including Caixin and Hong Kong Economic Daily, China's State Administration of Foreign Exchange (SAFE) said reserves rose by $31.691 billion (about 48.534766 trillion won), or 0.93%, from $3.41054700 trillion the previous month, the agency said Sunday.
The market had forecast $3.411 trillion, but the actual figure exceeded that by more than $31 billion. Reserves have remained above $3.3 trillion for 10 consecutive months, marking the highest level in 10 years and six months since November 2015.
The State Administration of Foreign Exchange cited the impact of the global macroeconomic environment and shifting expectations for major economies' monetary policies as reasons behind the increase in reserves. Fang Ming, a senior researcher at China's National Institution for Finance and Development, said, "The valuation of non-dollar assets fluctuated with the strength of the dollar, and the overall rise in global financial asset prices contributed to the expansion of foreign exchange reserves." He added, "Despite the complex international financial environment, China's foreign exchange reserves are maintaining a high level above $3.4 trillion, demonstrating stable cross-border capital flows and a capacity to buffer against external shocks."
Meanwhile, gold held by the People's Bank of China stood at 74.96 million ounces (2,331.52 tons) at the end of May, up 320,000 ounces (9.95 tons), or 0.43%, from 74.64 million ounces (2,321.56 tons) the previous month.
China holds the world's largest foreign exchange reserves and has been steadily increasing its gold holdings recently.
The market expects China to continue purchasing gold, a safe-haven asset, for the time being amid persistent U.S. interest rate policy and geopolitical uncertainty.
