Via Capital Economics:
Net capital outflows from China were broadly unchanged in June as greater inflows from foreign investors helped to offset increased outflows due to Chinese investment overseas, including in Belt & Road countries. China’s growing appetite for foreign assets means that outflows are likely to persist. But unless sentiment on the renminbi turns significantly more negative again, outflows should remain at a manageable level.
China’s balance of payments (BOP) – the most comprehensive source of data on capital flows – shows outflows of $21bn in Q1, down from $161bn in Q4. Preliminary figures for Q2 will only be published in August and we will have to wait until September for a detailed breakdown. Using monthly data we are able to compile more timely estimates of capital flows that match up well with those subsequently recorded on the BOP. These suggest that while outflows have declined markedly since late last year, they remain persistent.
