Forex purchase to rise

Foreign exchange purchases in June will rise significantly from May, Lian Ping, chief economist at Bank of Communications, was quoted as saying by China Securities Journal on Saturday.

Lian noted that June exports are very likely to move up following improvements from March to May, probably resulting in a bigger trade surplus and more funds available for foreign exchange.

In previous months, owing to downward pressure, individuals and banks preferred to hold forex and cross-border direct investment has slowed.

As the Chinese economy is showing more signs of stabilizing and targeted measures take effect, there will likely be more capital inflows and more forex settlements in June, factors pointing to increasing funds available for foreign exchange, according to Lian.

Lian forecast yuan funds available for foreign exchange are expected to see continuous increases on a monthly basis in the second half of 2014, but the increases will be smaller compared with the same period last year.