China says forex reserves rise 16%

China's central bank says its foreign exchange reserves rose 16 per cent year-on-year to $US1.954 trillion by the end of March.

In a notice on its website on Saturday the bank said reserves increased by $US7.7 billion in the first quarter, $US146.2 billion lower than the same period last year.

Analysts believe China holds up to 70 per cent of its foreign reserves in US dollar-denominated assets, including Treasury securities.

In March, the reserves increased by $US41.7 billion, an increase of $US6.7 billion more than at the same period last year.