China's foreign exchange reserves hit US$925 billion by the end
of May this year, a growth of 33.9 percent over the same period of
2005.
In May alone, the country's foreign exchange reserves rose by
US$30 billion, the highest monthly increase this year, the
Financial News reported on Wednesday.
Meanwhile, China's trade surplus averaged US$13 billion and
direct foreign funds flowing into China totaled US$23 billion in
the first five months.
These two factors contributed to the rapid growth of foreign
exchange reserves, said Zhao Xijun, deputy director of the Finance
Research Institute of the Beijing-based Renmin University of
China.
A report by the Macro Economic Research Institute with the
National Development and Reform Commission urged the Chinese
central government to step up macro economic controls and rein in
the fast growth in investment.
The report suggested the government increase interest rates at
an "appropriate time" if the overheated investment trend could not
be curbed.
China's foreign exchange reserves overtook Japan to become the
world's largest in February.
(Xinhua News Agency July 7, 2006)