Let's take a look at what analysts say about the increase of China's foreign exchange reserves.

Bloomberg says the data have further eased fears of capital outflows and weakness in the yuan. Analysts from Minsheng Securities attribute the hike to a steady yuan exchange rate, which comes after the easing of the US interest rate hike worries and an improved domestic economy.

And China Merchants Securities says the increase demonstrated an easing in the capital outflow pressure. China's Sinolink Securities says it remains to be seen whether this is a turning point for capital outflows. It urged authorities to draw up with response measures in advance.