Chinese capital outflow slows to trickle

Via Capital Economics:

 Capital outflows from China were broadly unchanged last month and are likely to persist at this relatively low level for the foreseeable future as households and firms increase their exposure to foreign assets. But unless sentiment on the renminbi turns significantly more negative again, outflow pressure should remain manageable.

 China’s balance of payments (BOP) – the most comprehensive source of data on capital flows – shows outflows of $22bn last quarter, the lowest since Q1 2014 and down from $161bn in Q4. A detailed breakdown will only be published at the end of this month and we will have to wait until August for preliminary figures for this quarter.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.