Yuan closes near a record high as confidence grows (2)

The exchange rate is tending toward equilibrium, Zhou Xiaochuan, governor of the central bank said earlier.

The State Administration of Foreign Exchange said last week that the future value of the yuan would be stable and the recent appreciation had not resulted an inflow of speculative foreign capital, or "hot money."

China's banks bought a net US$7.8 billion foreign exchange for their clients in October. But in the forwards market, the banks sold US$600 million last month, relieving concerns about a surge in capital inflow pressures.

"Domestic demand and supply of foreign exchange is basically balanced, and market expectations for yuan's future trend is stable," the SAFE said. "China's balance of payment will remain an equilibrium, and there will be more two-way flow concerning cross border capital movement."

We recommend:
World's highest-altitude civilian airport to start operations	Global sales of Samsung's Galaxy Note 2 tops 5 mln mark	China to open Beijing-Guangzhou high-speed rail route slows
China Telecom starts iPhone 5 pre-orders	China's MA700 to take flight in 2016	13th Int'l Automobile Industry Exhibition
Rural grid upgrades to ensure electricity	Staff members of bus company sort notes, coins	Galaxy Soho building in Beijing