CHINA has continued to record a net inflow of cross-border capital, and has maintained the yuan’s generally stable exchange rate as Chinese banks reported a large net foreign exchange purchase last month, official data showed Tuesday.

Chinese lenders bought US$229.7 billion worth of foreign currencies and sold US$210.6 billion‘s worth in April. That resulted in a net purchase of US$19 billion, said the State Administration of Foreign Exchange.

China’s development pattern of a stable forex market and balanced cross-border capital flows has remained unchanged, said Wang Chunying, the administration’s deputy head.

The tightening of monetary policies in major developed economies will have a spillover effect on the flows of international capital, but China’s forex market has become more mature and resilient to allow it to adapt better to changes in the external environment, Wang said.

The recent two-way adjustment in cross-border stock investments will neither affect the overall balance of cross-border capital flows nor impact the trend of overseas investors steadily increasing their holdings of yuan assets, she said.

Stock investment is only one part of cross-border capital flows, and it does not represent the overall situation, she said.

Commenting on the recent depreciation of the yuan, Wang said it was a short-term adjustment that will not change the general characteristics of the yuan’s exchange rate featuring two-way fluctuations and general stability at a reasonable and balanced level.

“For a mega economy like China, the long-term trend in the exchange rate is mainly determined by domestic fundamentals,” she said, noting that despite recent depreciation against the U.S. dollar, the yuan has remained relatively stable against other major currencies.

The value of the yuan and investment returns on yuan assets have both remained stable, and the independent market trend of yuan assets means they are a good choice for investment diversification, she said.

She said that serving the real economy is now a priority for the forex regulator, which will accelerate the implementation of supportive policies and simultaneously help enterprises manage risks posed by exchange rate fluctuations. (Xinhua)