China's foreign exchange reserves at the end of May: $3.285 trillion; estimated at $3.287 trillion

China's foreign exchange reserves at the end of May: $3.285 trillion; estimated at $3.287 trillion

China's foreign exchange reserves remained stable at $3.285 trillion at the end of May, as announced by the State Administration of Foreign Exchange on June 7, 2025 [1]. This figure reflects a consistent trend of resilience in the Chinese economy, despite ongoing global uncertainties and geopolitical tensions. The stability in foreign exchange reserves is a positive indicator of the country's economic health and its ability to manage external shocks.

The latest data from the National Bureau of Statistics shows that China's official Manufacturing PMI rose by 0.5 percentage points to 49.5 in May, while the Non-Manufacturing PMI fell by 0.1 percentage points to 50.3. Despite these fluctuations, both PMI indicators remain above the critical point, indicating continued overall expansion in the economy [1]. The resilience of production is stronger than that of demand, which has a greater pull on the rise of the May PMI. The "ice-breaking" between China and the U.S. in May has also diluted export risks, further contributing to the stability of foreign exchange reserves [1].

The State Administration of Foreign Exchange stated that China's economy is showing a positive trend with strong resilience and vitality, which is conducive to maintaining the stability of foreign exchange reserves [1]. The central bank's gold holdings have been increased for six consecutive months, further bolstering the country's financial reserves. This stability in foreign exchange reserves is crucial for maintaining the stability of the Chinese yuan and supporting the country's economic growth.

The continued stability in foreign exchange reserves is a significant achievement, especially in light of global economic uncertainties and the ongoing trade tensions between China and the U.S. As the Chinese economy continues to navigate these challenges, the stability of foreign exchange reserves serves as a key indicator of the country's economic resilience and its ability to manage external shocks.

References:
[1] https://longportapp.com/en/news/242700215