Guantao, Chief Economist of BOC Securities: China's foreign reserves hit a new high since 2016 at the end of August.

On September 7th, the State Administration of Foreign Exchange released statistics showing that as of the end of August, China's foreign exchange reserves stood at 3.3222 trillion US dollars, an increase of 29.9 billion US dollars from the end of July, a rise of 0.91%. In response to this, Guan Tao, Chief Economist of Bank of China Securities, stated that this was mainly influenced by expectations of major economies' monetary policies, macroeconomic data, and other factors. The US dollar index returned to a downward trend, global financial asset prices generally rose, and the appreciation of non-dollar currencies against the dollar and the rise in asset prices created positive valuation effects. Guan Tao believes that as of the end of August, China's foreign exchange reserves balance hit a new high since January 2016, indicating that China's ability to prevent and resolve various shocks continues to improve.