China has the foundation and conditions to adapt to policy adjustments by the U.S. Federal Reserve, as the country's foreign exchange market has been increasingly resilient in recent years, an official said Friday.
The Fed's interest rate hike is indeed an important external variable for an economy's balance of payments and cross-border capital flows, Wang Chunying, deputy head of the State Administration of Foreign Exchange, told a press conference.
But the fundamental factor is still the economy's market foundation, Wang noted.
The Chinese market will continue to be attractive for investors as the Chinese economy generally keeps running within a reasonable range and its stable and sound fundamentals will be unchanged in the medium to long term, she said.
Meanwhile, the basic international payment surplus, such as current account and direct investments, will remain at a certain scale and play a role in stabilizing cross-border capital flows, said Wang.
China's external asset and liability structure has been improving and the country's foreign debt risk is relatively low, while the foreign exchange reserve ranks first in the world, which enables the country to well adapt to external changes, Wang added.
Also, Wang noted that the Renminbi exchange rate has become more flexible in recent years, which has relieved external pressure in a timely and effective manner.
Looking forward, the administration will keep a close eye on the Fed's policy adjustments and make real-time assessments to keep the forex market stable, according to Wang.
