Weekend Long Read: What’s Behind China’s ‘Missing’ Foreign Exchange Reserves

Data released last week show a notable discrepancy between China’s trade surplus and foreign exchange reserves.

In the first quarter, China’s cumulative trade surplus reached $204.7 billion, a year-on-year increase of over 33%. However, during the same period, foreign exchange reserves only grew by around $55 billion, leaving a gap of about $150 billion.