China forex reserves decline

China's foreign exchange reserves fell to US$3.2 trillion (HK$ 25.03 trillion) in April, down 1.38 percent from the previous month, according to the State Administration of Foreign Exchange.

The office said the drop was due to the combined effect of exchange rate fluctuations and asset price changes, citing the rising US dollar index and a lowering in global financial asset prices.

Meanwhile, Hong Kong's foreign exchange reserve assets stood at US$416.4 billion as of April end, down by 1.7 percent from March, the Hong Kong Monetary Authority said yesterday.

Standard & Poor's and Fitch recently maintained Hong Kong's rating at AA+ and AA- respectively.

And S&P said the city's economic growth was likely to slow to 2.5 percent this year from 3.2 percent last year. As the economy recovers further and property market stabilizes, the fiscal deficit is expected to narrow over the next three to four years, it said.