China’s $300 Billion Errors May Mask Outflows, Goldman Says
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China’s balance of payments figures are suggesting a pickup in covert fund outflows, which may spur the central bank to keep the yuan stable, according to Goldman Sachs Group Inc.
Errors and omissions, an accounting practice used by nations to balance numbers when official records of cross-border flows don’t match, were equivalent to net outflows of more than $300 billion since 2010, Goldman Sachs economists MK Tang and Maggie Wei wrote in a note today. That included a record $63 billion in the third quarter of 2014, a year in which yuan sentiment soured and President Xi Jinping’s anti-corruption drive widened.