China’s foreign capital outflows ‘under control’, forex regulator says
- China’s slowing economy, reeling under strict coronavirus containment measures, and US interest rate increases have resulted in a surge in outflows in recent months
- Latest monthly flows data showed foreigners withdrew a net US$17.5 billion from local shares and bonds in March.
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.
We see that inflow and outflow are quite natural in securities investment
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.
