Pressure on China's cross-border capital outflows has gradually eased, the nation's foreign exchange regulator said on Monday, after data showed commercial banks' net foreign exchange sales dropped in May.
China's commercial banks sold a net $12.5 billion worth of foreign exchange in May, versus net sales of $23.7 billion in April, data from the State Administration of Foreign Exchange (SAFE) showed.
"This year, China's cross-border capital outflow pressures have eased, better reflecting the economy's fundamentals," the SAFE said in a statement on its website.
Chinese companies and individuals are less willing to hold foreign exchange, the regulator noted, citing data that outstanding foreign currency-deposits in China declined by $8.8 billion in May compared with an increase of $900 million in April.
Companies' efforts to deleverage their foreign debt also slowed, SAFE said.
Net forex sales totaled $161.0 billion in the first five months, the regulator said.
The People's Bank of China, the central bank, sold a net 53.7 billion yuan worth of foreign exchange in May, earlier data showed, easing from net sales of 54.4 billion yuan in April.
China's foreign exchange reserves fell by $27.9 billion in May to $3.19 trillion, their lowest level since December 2011, likely due to the effects of a stronger dollar and sporadic official intervention.
