On April 22, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said at a press conference that short-term fluctuations in cross-border securities investment are a common feature of the global market.
Compared with long-term stable investments such as direct investment, securities investment is more sensitive to the market, and has convenient transactions and strong liquidity, which is prone to increased inflows or outflows.
This is normal for increasingly open financial markets.
Wang Chunying said that the periodic adjustment of China's cross-border securities investment is also a natural reaction of the market.
In recent years, with the gradual advancement of the two-way opening of the financial market, China-related cross-border capital flows have become more active, and there have been short-term fluctuations.
The partial adjustment of cross-border securities investment has not changed the overall balance of cross-border capital flows in China.
Wang Chunying introduced that in the first quarter of this year, cross-border funds under the current account and direct investment maintained a surplus, reflecting China's good economic prospects and huge market potential, which supported China's cross-border receipts and payments and domestic foreign exchange supply and demand to maintain a basic balance.
Short-term fluctuations in cross-border securities investment do not represent the overall pattern of foreign capital flows, much less the long-term investment willingness of foreign capital.
(Chi Hanyu)
Responsible editor: [Lu Yan]