Economics
Yuan Turnover Soars in Sign of December Outflow Pressures
- Daily average volume surges this month as currency drops
- Increase suggests capital exodus is accelerating: RBS
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The onshore yuan’s surging trading volume is another piece of evidence that capital is fleeing China at a faster pace.
The daily average value of transactions in Shanghai climbed to $34 billion in December as of Monday, the highest since at least April 2014, according to data from China Foreign Exchange Trade System. That’s up 51 percent from the first 11 months of the year. The increase suggests quickening outflows, given that data in recent months showed banks were net sellers of the yuan, according to Harrison Hu, Singapore-based chief greater China economist at Royal Bank of Scotland Group Plc.