China's Foreign-Exchange Reserves Grew in October for Ninth Straight Month

Features Dow Jones Newswires

China's foreign-exchange reserves grew for a ninth straight month in October, official data showed Tuesday.

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The reserves increased by $7.03 billion from the previous month to $3.1092 trillion at the end of October, following a gain of $16.98 billion in September, the People's Bank of China said.

Beijing's tightened rules on moving money out of the country have helped limit capital outflows this year. Renewed firmness in the yuan this year against other currencies including the U.S. dollar has also reduced the need for the central bank to burn through reserves to prop up the Chinese currency.

In a bid to stanch outflow, China has restricted several high-profile overseas deal makers, including the property-to-entertainment conglomerate Dalian Wanda Group, from further expanding their "irrational investment" that is seen by the authorities as channeling money outside of the country. China's State Council also announced formal measures to restrict outbound investment in property, hotels, cinema, entertainment and sports clubs.

As a result, China's overseas direct investment plummeted 42% in the first nine months from a year earlier.

In another sign of eased outflow pressure, China's central bank and commercial banks recorded net purchases of foreign exchange in September for the first time in about two years, marking a tentative success in its two-year batter to stabilize the yuan.

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Write to Grace Zhu at grace.zhu@wsj.com.

(END) Dow Jones Newswires

November 07, 2017 05:13 ET (10:13 GMT)