China's financial system 'largely stable': Forex regulator

The statement came as China's foreign exchange reserves posted the sharpest monthly fall on record in December.

China's financial system is "largely stable" and forex reserves are "relatively abundant", the foreign exchange regulator said today despite the reserves posting its sharpest monthly fall on record in December.

The official remarks came after the Chinese yuan, under persistent depreciation pressure, dipped to a five-year low against the US dollar this week.

The State Administration of Foreign Exchange said in an online statement it will further facilitate cross-border trade and investment, and continue to promote the yuan's convertibility under the capital account in an orderly manner.

The administration will strengthen the monitoring of China's balance of payments, and improve the management of foreign debt and cross-border capital flows.

The statement came in the backdrop of China's foreign exchange reserves, the largest in the world, posting the sharpest monthly fall on record in December.

Foreign exchange reserves fell to $3.33 trillion at the end of last month, the lowest level in more than three years and down by $108 billion from November, the People's Bank of China said.

The fall in December extended a month-on-month decline of $87.2 billion dollars registered in November.