China sees 2nd month of net forex sales

BEIJING -- Chinese banks sold more foreign currency than they bought from clients in June, reflecting that companies and individuals have become more willing to hold foreign currencies, the country's foreign exchange authority said Tuesday.

Chinese lenders bought $129.5 billion on behalf of clients in June, while they sold $133.1 billion, marking the second monthly deficit since April this year, the State Administration of Foreign Exchange said in a statement on its website.

The June deficit stood at $3.6 billion, down from $3.7 billion recorded in April.

Analysts said the deficit was a result of a narrowing trade surplus, a slowdown in the growth of foreign direct investment and weakened expectation for the yuan's appreciation.

In the first half of the year, Chinese banks bought $745.1 billion in foreign currency, and sold $715.6 billion, leading to a surplus of $29.5 billion, the SAFE said in the statement.