China's forex reserves continued to shrink in December, falling for a sixth straight month, but the overall annual drop in 2016 narrowed year on year, official data showed. The central bank's efforts to stabilize the Chinese yuan are the major reason for China's falling foreign exchange reserve, the State Administration of Foreign Exchange (SAFE) said on Saturday.

The SAFE on Friday pledged to intensify its crackdown on foreign exchange irregularities in 2017, including underground banking. The administration will also strengthen management of cross-border capital flow, and make further reforms to facilitate trade and investment in order to better serve the real economy. It will also improve operating management of foreign exchange reserves to maintain safety and flexibility while guarding against losses in value.

(Story with inputs from Xinhua and China Daily)