China cross-border capital flow more balanced

Chinese cross-border capital flow became more balanced in the second quarter of this year, as shown by new data on foreign currencies bought and sold by commercial banks.

Guan Tao, head of the balance of payment division under the State Administration of Foreign Exchange, told a press conference on Wednesday that Chinese banks' net forex purchases stood at 29 billion U.S. dollars in the second quarter, down 21 percent from a year earlier and plunging 82 percent from the previous quarter.

"The imbalance of supply and demand on the spot forex market has significantly improved," Guan said.

In the first quarter of 2014, Chinese banks saw a whopping 159.2 billion U.S. dollars in net forex purchases, which represent the difference between foreign currency purchases and sales by commercial banks.