China forex reserves expected to hit $820 bn

China's foreign exchange reserves are expected to total $820 billion by the end of 2005 on strong trade inflows, an economist at a government think tank said.

Local exporters expecting an increase in the yuan's value may aim to settle their foreign exchange receipts earlier than usual and importers may delay imports, which would result in a larger trade surplus, said Wang Zhao, an economist at the State Council's Development Research Center.

A larger surplus would put upward pressure on forex