Capital account deficit increased last quarter
China’s capital account deficit widened sharply in the last quarter of 2014 as domestic companies expanded investment overseas.
The capital and financial account deficit was $91.2 billion for three months ending in December, compared with the third quarter’s $9 billion, according to preliminary statistics released by the State Administration of Foreign Exchange (SAFE).
China posted a deficit on its capital and financial account for three consecutive quarters due to rapid increases in overseas investment and speculation of further depreciation of the yuan, the country’s currency, analysts said.
China reported a current account surplus of $61.1 billion in the fourth quarter last year, narrowing from $72.2 billion posted in the third quarter, the SAFE said.