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China’s Reserves Retreat From $4 Trillion Mark as Outflows Seen

China’s foreign-exchange reserves unexpectedly fell by the most on record in the third quarter, a sign speculative capital is being pulled from the country amid concern about a deepening economic slowdown.

The holdings, which are more than triple the size of any other nation’s, declined by $103 billion to $3.89 trillion, according to figures released today. The median projection of economists surveyed by Bloomberg was for an increase to $4.01 trillion from $3.99 trillion, after a $172 billion advance in the first half of the year. Reports last month showed China’s imports unexpectedly contracted in August, while aggregate financing and industrial production fell short of estimates.