Yahoo Finance

* China's FX reserves fall by $17.97 bln in April

* Economists polled expected reserves to drop by around $10 bln

* Stronger dollar seen depressing value of reserves

By Kevin Yao and Fang Cheng

BEIJING, May 7 (Reuters) - China's foreign exchange reserves in April fell more than expected, to a five-month low, as the U.S. dollar rebounded and on growing signs that Chinese regulators are less worried about capital flight.

Reserves fell $17.97 billion in April to $3.125 trillion - the lowest since November 2017, compared with a rise of $8.34 billion in March, central bank data showed on Monday.

Economists polled by Reuters had forecast reserves would drop around $10 billion in April to $3.133 trillion, with a stronger U.S. dollar versus other currencies expected to depress the value of China's dollar-denominated reserves.

The dollar index against other major currencies rose 2 percent last month.

Capital flight was seen as a major risk for China at the start of 2017, but a combination of tighter capital controls and a faltering dollar helped the yuan stage a strong turnaround, bolstering confidence in the economy.

Last year, China's reserves rose for the first time since 2014 and its cross-border capital flows went from net outflows to basically stable.

The escalating trade dispute between China and the United States could hurt both exporters on both sides and weigh on their economic growth, while adding to volatility in global financial markets.

But China's foreign exchange regulator said in April that any potential impact on its cross-border capital flows stemming from Sino-U.S. trade frictions can be controlled.

COURTING CAPITAL INFLOWS

The yuan has lost around 1 percent against the resurgent greenback in April, but it is still up around 2.5 percent so far this year.

Indeed, in recent weeks, Chinese authorities have announced a series of moves which suggest they are less worried about capital outflows, including allowing local investors to put more money into global financial markets.

At the same time, China has moved to give foreign investors more access to its equity, bond and commodity futures markets, which will help support the yuan and offer greater balance to cross-border flows.

The value of China's gold reserves fell to $77.788 billion at the end of April, from $78.419 billion at the end of March.

(Editing by Jacqueline Wong)