China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP
China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP

China ‘stuck’ as rigid controls on capital outflows becoming harder to peel back

  • China imposes a strict capital account system to control the yuan exchange rate, its international balance sheet and the size of foreign exchange reserves
  • But the regime comes with risks, analysts say, including distorting supply and demand in the foreign exchange market and restricting investment in some areas

Topic |   Foreign exchange market
China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP
China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP
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