China's foreign exchange reserves totaled 3.4278 trillion U.S. dollars at the end of February 2026, marking an increase of 28.7 billion dollars, or 0.85 percent, from the end of January, according to official data released on Saturday.
The State Administration of Foreign Exchange noted that the U.S. dollar index increased in February, while prices of major global financial assets saw mixed movements, influenced by macroeconomic data, monetary policies, and market expectations in major economies.
The combined effects of exchange rate conversion and changes in asset prices contributed to the increase in China's foreign exchange reserves during the month, the administration said.
China's economy registered steady and improving performance, with new and higher-quality development momentum, the administration noted. The supporting conditions and underlying trend for the long-term sound development of the Chinese economy remain unchanged, providing solid support in the quest to keep the scale of foreign exchange reserves basically stable, it added.
"At the end of February, China's foreign exchange reserves exceeded 3.4 trillion dollars for the first time in nearly ten years, marking the seventh consecutive month of month-on-month growth. We believe the increase in forex reserves, on one hand, confirms that China's long-term positive macroeconomic trend has laid a solid foundation for the overall balance of payments; on the other hand, it also demonstrates that the risk-hedging capabilities of China's reserve assets' are continuously enhancing amid rising volatility in global financial asset prices," said Li Liuyang, chief forex analyst of China International Capital Corporation's research department.
China's foreign exchange reserves rise in February
The global energy crunch and its impacts on Southeast Asia are driving efforts to link the power grids of ASEAN member states, with officials and analysts saying the push could strengthen energy security and accelerate the shift to renewables.
For decades, the idea of an interconnected ASEAN power grid has been on the regional agenda. The current crisis in the wake of wars in Iran and other Gulf states has added urgency, highlighting both the region's diverse energy resources and its vulnerabilities.
Some countries in the region have abundant natural gas or hydropower, others hold vast solar potential, while countries like Singapore rely almost entirely on imports. Even power-producing nations at times face shortages, making cross-border supply an attractive solution.
"It will help us to strengthen our energy security. And of course, a diversified and cheaper supply of energy will boost our regional economic integration and economy. So I think everyone benefits from this," said Chheang Vannarith, chairman of the Cambodian National Assembly Advisory Council.
Malaysia, as ASEAN chair last year, pressed for stronger commitments. Analysts say the current crisis is sharpening focus on the issue.
"It is definitely a wake-up call. It acts as a catalyst. It is also our hope that the Philippines, as the chair of ASEAN this year, and given the circumstances that we are in today with the global energy crisis and the global supply crisis, that this agenda is put at the forefront of the ASEAN discussion," said Amir Fareed Raheem, geo-economist at KRA Group, an ASEAN-focused public affairs and political risk consultancy.
Even as the idea gains momentum, major challenges remain ahead in terms of agreeing on regulations, technical standards and pricing. Further out still are the more ambitious proposals, such as undersea cables to transmit hydropower from northern Malaysia to Singapore and beyond.
Despite the lingering questions, tangible progress is being made. Since 2022, a flagship pilot project has enabled hydropower from Laos to flow through Thailand and Malaysia to Singapore. An agreement signed earlier this year will double its maximum capacity.
"Eleven countries, [with] different systems, different pricing mechanisms. It has to be tested in smaller groupings first before it is scaled up to the whole ASEAN operating system," said Raheem.
With countries striving to expand renewable energy and the crisis straining supplies, consensus is building to move the ASEAN power grid from long-standing aspiration to practical reality.
ASEAN power grid integration gathers pace amid energy crisis
