The reserves grew $21.4bn (€16bn, £12bn) in September – far below the foreign exchange inflow generated by a record $29bn trade surplus and $9.9bn in foreign direct investment.
Beijing has been concerned about “hot money” being brought into the country by businesses and individuals betting on the continued rise of the renminbi, worrying that such inflows will inflate asset bubbles, fuel inflation, put further upward pressure on the currency and create potential vulnerabilities in the domestic financial system.
Near total government secrecy about the composition of the reserves and how they are accounted for makes judging the scale of speculative flows highly difficult, but Stephen Green of Standard Chartered, said Tuesday's data showed a clear exodus of “unexplained” capital in the last quarter after inflows of $162bn in the first half.