The People’s Bank of China added that the value of gold reserves in the second largest economy in the world increased to 119.02 billion dollars at the end of May from 110.72 billion dollars at the end of April.
This comes at a time when China’s imports grew in May at the fastest pace in a decade, driven by higher demand for raw materials, although export growth slowed more than expected amid delays caused by Covid-19 infections in the country’s main southern ports.
While the rapid recovery in developed markets boosted demand for Chinese products, the outlook for the world’s largest exporter has been weakened by a global shortage of semiconductors, rising raw material and shipping costs, logistical bottlenecks and a recovering yuan.
China’s dollar exports in May grew 27.9 percent from a year earlier, slower than 32.3 percent in April and less than analysts’ expectations of 32.1 percent.
Imports in dollars rose 51.1 percent on an annual basis last month, the fastest growth since January 2011, but slower than the 51.5 percent increase predicted by a Reuters poll.
However, this figure, which is a measure of import values and not its volume, was partially affected by the rise in raw materials prices due to the demand for commodities such as coal, steel, iron ore and copper, after easing public isolation measures to confront the outbreak of the Corona virus pandemic in many countries and the availability of liquidity globally.
China recorded a trade surplus of $45.53 billion for the month of May, which is more than the surplus achieved in April, which was $42.86 billion, but less than the expected amount of $50.5 billion.