China’s Efforts to Stem Capital Outflows Are Starting to Pay Off
- Capital account sees net inflows for first time in 17 months
- Fund flows to improve in January and yuan to stabilize: RBS
Why Money Keeps Flowing Out of China
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China’s campaign to stop cash flooding out of the country is showing some success.
For the first time since the yuan’s devaluation in August 2015, Chinese banks last month registered net inflows under the capital account, according to cross-border payments figures released last Thursday by the currency regulator. The yuan, which plunged last year by the most in two decades, is now heading for its biggest monthly advance against the dollar since March.