China’s foreign exchange regulator said on Wednesday the recent retreat of foreign investments from the country amid a weakening yuan was “well under control” and that Beijing would continue to open up both outbound and inbound investment channels. Overseas investments in Chinese markets totalled just over 8 trillion yuan (US$1.2 trillion) at the end of last year. However, the country’s slowing economy, reeling under strict coronavirus containment measures, and US interest rate increases have resulted in a surge in outflows in recent months, weighing on the currency. We see that inflow and outflow are quite natural in securities investment Wang Lei The latest monthly flows data showed foreigners withdrew a net US$17.5 billion from local shares and bonds in March. Volatility in China’s financial markets and foreign investment into the country was “a natural response” in a “complicated context”, Wang Lei, deputy director general, Capital Account Management Department for the State Administration of Foreign Exchange told a virtual China capital market conference. “We see that inflow and outflow are quite natural in securities investment. Everything has been well under control and I see this partial adjustment doesn’t change the overall balance of the cross-border capital flow in China,” he said.