China posts surprise gain in foreign exchange reserves despite yuan’s depreciation

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China’s foreign exchange reserves increased unexpectedly in May despite depreciation of the yuan amid escalating tensions with the US. The rise was primarily boosted by changes in asset prices.

China's foreign exchange reserves increased to $3.1017 trillion by the end of May, rising $10.2 billion or 0.3 per cent higher than a month earlier, higher for the second consecutive month, shows data released by the State Administration of Foreign Exchanges (SAFE) on Sunday. That's significantly better than a $10.459 billion fall expected by analysts in a Reuters survey.