China’s Massive Current Account, Capital Surpluses Underpin Yuan

China posted strong foreign exchange inflows last year, thanks to record exports and high returns on domestic assets, helping to underpin the yuan’s rally.

The surplus on the current account -- the broadest measure of trade in goods and services -- climbed to $224.2 billion last year, the highest since 2013. The capital account surplus reached $83.2 billion, the most since records began in 2010, according to Bloomberg calculations of data released by the State Administration of Foreign Exchange.