China witnessed a slowing down of foreign capital inflow during the first quarter of this year, a report analyzing inter-bank foreign exchange market operation by the central bank pointed out Wednesday. Both the contractual value of foreign investment and the number of newly approved foreign-funded enterprises dropped back, a sign of effective macro-regulation measures by the government.

China's import growth rate began to fall last year, and dropped back by a large margin in the first two months this year, while export had been keeping high-speed growth, the report said. The sharp decline of import growth indicated slowing production activities at home, a sign of cooling down economy in a degree.

During the first quarter the Federal Reserve raised interest rate by 25 points twice, leaving the Federal Fund Rate rising from 1 percent last year to current 2.75 percent. The central bank believes that the interest hikes will help attract floating capital to the United States, therefore easing pressure on RMB revaluation in a certain degree. The bank said that the country will maintain a basically stable RMB exchange rate at a rational and balanced level.

Source:People's Daily