Cap­i­tal out­flow surged in 2015 to $465.9 bil­lion

China Daily (Canada) - - NEWS CAPSULE -

Ac­cel­er­ated cap­i­tal out­flow in 2015 re­sulted in record high net sales of $465.9 bil­lion in for­eign ex­change from banks on the Chi­nese main­land, the cen­tral govern­ment re­ported.

The State Ad­min­is­tra­tion of For­eign Ex­change (SAFE), China’s top cur­rency trade reg­u­la­tor, said the vol­ume of the cap­i­tal out­flow was in part brought on by the US Fed­eral Re­serve rais­ing in­ter­est rates.

The SAFE said the out­flow is still man­age­able and can­not threaten the over­all health of the fi­nan­cial sys­tem.

Along with the dra­matic cap­i­tal out­flows, Chi­nese for­eign ex­change re­serves sharply de­creased by $512.7 bil­lion last year, to $3.33 tril­lion, though it re­mains the world’s largest.

Ac­cord­ing to the SAFE $253.8 of the re­duc­tion in the re­serves was from Chi­nese non-bank­ing en­ter­prises and in­di­vid­u­als, com­ing from di­rect over­seas in­vest­ment, over­seas equity in­vest­ment un­der the Qual­i­fied Do­mes­tic In­sti­tu­tional In­vestor scheme, re­pay­ment of for­eign debt and out­bound tourism and con­sump­tion.

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