The commercial banks are struggling to find an answer to effectively recycle the huge influx of foreign currencies resulting from overseas sales, and in turn how to generate investment returns, analysts told South China Morning Post.

China is also seeing rising capital inflows from other channels, such as foreign direct investment into China’s growing economy, as well as portfolio investment into mainland stocks and bonds, the newspaper reported.

This demand for Chinese assets, in turn, continues to place upwards pressure on the yuan exchange rate, which Beijing is trying to avoid, reports South China Morning Post.

China, which is believed to be the nation from where COVID-19 disease spread across the globe, also faced troubles due to the infection.