Trade Surplus Boosts Renminbi Appreciation

As China's exports gradually improve and the trade surplus continues to expand, the country is likely to extend the trend of capital inflow and see the currency further appreciate, the financial department of the Bank of China said in a research note.

China's exports rose 5.6 percent year-on-year in the January-October period while imports increased 7.6 percent, leaving a trade surplus of US$31.1 billion, the biggest this year, according to the General Administration of Customs.

October's trade surplus takes the total for this year to US$200.46 billion, the biggest 10-month total since 2008. It hit US$230.7 billion for the whole of 2012.

The currency has appreciated about 2.3 percent against the dollar this year, the most among 11 major Asian currencies tracked by Bloomberg.