Chinese banks report slight forex settlement surplus in February

China's commercial banks saw a net forex settlement surplus of 12 billion yuan (US$1.69 billion) in February, official data showed on Friday.

In yuan terms, forex purchases by banks stood at about 1.09 trillion yuan, while sales reached about 1.08 trillion yuan, data from the State Administration of Foreign Exchange showed.

China's forex market saw a stable performance, with a more steady flow of cross-border capital, said Wang Chunying, deputy director and spokesperson of the administration.

In February, the net inflow of cross-border funds under the goods trade and the securities investment categories both remained at a high level, Wang added.

The daily net inflow of cross-border funds under the goods trade category, deducting the Spring Festival holiday effect and other factors, increased by 3 percent year on year during the period, which continued to underpin the fundamentals of cross-border capital flow, Wang said.

The net increase in foreign holdings of domestic bonds stood at a higher level at 11.1 billion US dollars in February, and foreign investment in domestic stocks turned to net gain during the period, showing a stronger willingness among foreign investors to invest in yuan-denominated assets, Wang added.

Looking ahead, Wang said she believes that China's forex market would maintain stable performance, bolstered by the country's solid economic fundamentals, consistent support policies and the market's growing resilience.