China had the largest dollar increase in its foreign dollar exchange ever; hoarding forex at an unsustainable rate

China reported the largest dollar increase in its foreign exchange reserves in the third quarter—a whopping $194 billion or $776 billion at an annual rate.  That means they are hoarding forex.  This eventually has to give, and will dramatically increase the purchasing power of the Chinese consumer.  To people selling goods to China, life will get much better, via India Times:

China's foreign exchange reserves swelled to a whopping $ 2.64 trillion at the end of September, but trade surplus fell to five month low to $ 16.9 bn.

The reserves went up from $ 2.45 trillion at the end of June, to 2.64 last month, according to the latest figures released by the People's Bank, China's central bank.

Faced with the glut of forex reserves, China has been investing heavily in the debt bonds of US, Japan and European Union.

Meanwhile, the new trade figures released today showed that the gap between exports and imports has narrowed to a five month low.

China's trade surplus for September dropped by 15.7 per cent, month-on-month, to $ 16.88 bn, which analysts attribute to a steady rise of Yuan due to sustained pressure from the US.

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