China FX reserves rise for sixth month, gold holdings up for 15th

by XIN Yuan

China's foreign exchange reserves rose for a sixth consecutive month in January, while its gold holdings increased for the 15th straight month, official data showed on Friday, as a weaker dollar and higher global asset prices lifted reserve values.

Data from the State Administration of Foreign Exchange (SAFE) showed reserves stood at $3.3991 trillion at the end of January 2026, up $41.2 billion, or 1.23%, from December.

SAFE said the rise reflected a fall in the dollar index and broad gains in major global financial assets, influenced by fiscal and monetary policy shifts in major economies. Exchange-rate movements and asset price changes combined to push reserves higher.

China's economy has continued to show steady momentum and resilience, providing support for broadly stable reserve levels, SAFE added. Over 2025, reserves rose in 11 months, increasing by $155.51 billion for the year.

WEN Bin, chief economist at China Minsheng Bank, said the dollar remained weak in January amid heightened geopolitical risks and market concerns over U.S. policy signals, while higher U.S. Treasury yields lifted global asset prices.

Wen said China's trade remained resilient in 2025, with exports hitting record highs and shipments of new energy and high-end equipment products gaining share. Overseas investors' long-term appetite for yuan assets has improved, he added, with portfolio inflows remaining at reasonable levels and foreign direct investment broadly stable.

Separately, data from the People's Bank of China showed China's gold reserves rose to 74.19 million ounces at the end of January, up 40,000 ounces from December, marking a 15th consecutive monthly increase.

WANG Qing, chief macro analyst at Golden Credit Rating, said the steady additions signal efforts to optimize China's reserve composition, noting that gold still accounts for a smaller share of China's reserves than the global average.