China Outflows Could Reach $500 Billion in 2016, JPMorgan Says

China could see capital outflows of $500 billion this year, posing a challenge to policy makers trying to defend the yuan in the midst of an economic slowdown and a plunge in equities, according to JPMorgan & Chase Co.’s chief Asia strategist.

While the People’s Bank of China would like to control the yuan’s decline, those holding assets denominated in the currency could sell to avoid losses, Adrian Mowat said in an interview in Manila on Tuesday. The nation is estimated to have seen withdrawals of $650 billion last year, he said.