China's foreign exchange reserves fell more-than-expected in September despite the yuan's recovery, amid a slowdown in the domestic economy and growing trade tensions between China and the United States.
China's reserves, the world's largest, fell about $ 15 billion in September to $ 3.092 trillion, according to official data released on Sunday.
Economists polled by Reuters had expected reserves to fall $ 6 billion from August to $ 3.101 trillion.
The drop last month was triggered by fluctuations in currency exchange rates and asset prices, the Chinese Foreign Exchange Bureau said in a statement released after the figures were released.
The uncertainty in the international economic and financial environment and the volatility of global financial markets are expected to increase in light of the slowing global economy and the rise of trade protectionism.
China has managed to contain capital outflows over the past year, despite a growing trade war with the United States and slowing economic growth at home.
Reserves recovered from the lows recorded in October 2018 thanks to restrictions on capital movements and increased foreign investment in Chinese stocks and bonds.
In September, the yuan rose 0.14% against the dollar after posting its biggest monthly loss in 25 years in August.
The yuan has fallen about 11 percent against the dollar since the two sides began their trade war in April last year.
Overview
As a net exporter to the US and the rest of the world, China has the largest foreign exchange reserves in the world.
Many of these reserves are denominated in US dollars and have accumulated through continuous surpluses with the United States since the early 1990s.
The US Treasury market is a natural spot for many of China's dollars, because it is by far the largest and most liquid pool of safe assets in the world. China holds more than $ 1 trillion in US Treasury bonds.