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China Reports Record Capital-Financial Account Gap for 2012

China last year had the biggest deficit in its financial and capital account since records began in 1982 as the domestic and global economies slowed, spurring outflows of funds.

The $117.3 billion annual gap was the first since 1998 when investors deserted China during the Asian financial crisis and reversed a $221.1 billion surplus in 2011, according to data released on the State Administration of Foreign Exchange website yesterday. The excess in the current account, the broadest measure of trade, rose to $213.8 billion in 2012 from $201.7 billion the previous year.