China's foreign exchange reserves reach 4-month high

China's foreign exchange reserves reached a four-month high of $3.17 trillion as of the end of November while gold reserves increased for the 13th consecutive month, the State Administration of Foreign Exchange said on Thursday.

The country's foreign exchange reserves were up by $70.6 billion or 2.28 percent compared with the end of October, as the US dollar weakened while global financial markets rose, SAFE said, ending a three-month streak of decrease.

Meanwhile, China's official gold reserves reached 71.58 million ounces at the end of November, up from 71.2 million ounces a month earlier, marking the 13th consecutive month of increases, according to SAFE.

The administration added that China's economic recovery and solid economic fundamentals will help the country's foreign exchange reserves stay generally stable going forward.

Looking at the coming months, Zhou Maohua, a researcher at China Everbright Bank, said the country's foreign exchange reserves are expected to be underpinned by the fading spillover effect of developed economies' monetary tightening, the resilience of the country's foreign trade and capital inflow into renminbi-denominated assets.