China In-Focus — Asian giant’s April forex reserves fall; US, Chinese regulators in talks for audit deal; Tesla targets pre-lockdown output in Shanghai

China In-Focus — Asian giant’s April forex reserves fall; US, Chinese regulators in talks for audit deal; Tesla targets pre-lockdown output in Shanghai

BEIJING: China’s foreign exchange reserves fell by $68 billion in April, the biggest drop in five and half years, official data showed on Saturday, as the dollar climbed while foreign investors dumped Chinese stocks amid worries about the slowing economy. The country’s foreign exchange reserves — the world’s largest — fell to $3.12 trillion last month from $3.18 trillion in March, the biggest monthly drop since November 2016. Analysts polled by Reuters had expected the reserves to fall to $3.13 trillion in April. The State Administration of Foreign Exchange said in a statement that the 2 percent drop in April reserves from March mainly reflected the valuation effect as the dollar gained against other major currencies and changes in global asset prices. “In April 2022, China’s cross-border funds generally continued the trend of net inflows, and the supply and demand in the domestic foreign exchange market remained basically balanced,” the SAFE said. The yuan fell 4 percent against the dollar in April, while the dollar rose 5 percent in April against a basket of other major currencies. Overseas investors extended their selling of Chinese shares into April on mounting worries about the impact of prolonged COVID-19 lockdowns and the fallout