China's current account surplus continues

BEIJING - China's current account surplus in the second quarter reached $72.2 billion, the State Administration of Foreign Exchange said on Wednesday.

The goods trade surplus hit $109 billion, but the service trade posted a deficit of $29.6 billion.

A surplus of capital and financial accounts totalled $36.9 billion in the April-June period. Net inflows of direct investment amounted to $40.3 billion.

Due to the surpluses, China's international reserve assets increased by $35.3 billion. Among the assets, foreign exchange reserve assets (excluding the influence of exchange rates and prices) rose by $35.7 billion. Special drawing rights and the reserve position in the International Monetary Fund saw a drop of $300 million.

For the first half year, the current account surplus was $79.3 billion while the capital and financial account stood at $81.5 billion, resulting in an increase of $160.8 billion in international reserve assets.

The country has witnessed quarterly surpluses in both accounts - the current account and the capital and financial account -- since the final quarter of 2012. This may add to appreciation pressure on the yuan and incur problems from international speculative capital inflow.

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