China's foreign exchange funds fall in Nov. (2)

However, China's trade surplus, an indicator that helps explain the trend in funds for foreign exchange, shrank from 31.99 billion U.S. dollars a month earlier to 19.63 billion U.S. dollars in November, with exports growing slower than expected and imports unchanged.

But a detailed analysis of the reasons for the decline should wait until after the upcoming release of further sets of data, including figures for Foreign Direct Investment, according to analysts.

Despite the monthly drop, which means less cash injected into the market, analysts believe that the country's overall market liquidity remains steady and that further monetary easing measures are unlikely.

Analysts also said that the monthly fall does not necessarily represent "hot money," referring to speculative capital flowing out of the country.

China's funds outstanding for foreign exchange have undergone fluctuations this year due to uncertainties in the global financial market. The figure saw declines in July and August before two monthly rises in September and October.