Capital outflow surged in 2015 to $465.9 billion
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.