Latest News:  
Beijing   Heavy rain/Thundershower    27 / 23 ℃  City Forecast

English>>China Business

China's capital flight unlikely

(People's Daily Online)

08:26, August 03, 2012

China's current account surplus widened to 59.7 billion U.S. dollars in the second quarter, while its capital and financial account slipped into a deficit of 71.4 billion U.S. dollars, according to statistics recently published by the State Administration of Foreign Exchange (SAFE).

In the first half of the year, the country's current account surplus was 83.2 billion U.S. dollars, capital and financial account deficit was 20.3 billion U.S. dollars, and its international reserve assets increased 62.9 billion U.S. dollars, the data shows.

Does the capital account deficit indicate a capital flight from China?

A SAFE official explained that the country has suffered sporadic capital outflows in the first half of the year, but there is no sign of a massive capital withdrawal.

In theory, a current account surplus greater than the increase in foreign exchange reserves means that domestic institutions and private capital witness net exports, and China's net foreign assets are on the rise, he said.

According to statistics on cross-border transactions by domestic companies and individuals as well as foreign exchange gains and losses, the main change in China's foreign exchange situation is that domestic institutions and individuals rather than the central bank have increased their holdings of foreign exchange assets. There are few signs of a capital flight from China, the official said.

Read the Chinese version at: 外资主动撤离迹象尚不明显, Source: People's Daily


Leave your comment0 comments

  1. Name


Selections for you

  1. Chinese frigate begins goodwill visit to Romania

  2. Blackout afflicts 600 million Indians

  3. China will maintain labor cost advantage in foreseeable future

  4. Performance at opening ceremony of Silk Road Tourism Festival

  5. So cute! Greedy hamsters

  6. Fascinating scenery captured by Mike Brandt

Most Popular


  1. US sanctions on China's bank ridiculous
  2. Editorial: Do business, not politics
  3. Arrival of Chinese fleet rattles EU
  4. India’s blackout offers lesson to China
  5. Editorial: For a stronger private sector
  6. India's sea oil push politically motivated
  7. Rare earth regulation justified
  8. How to improve China's tourism industry
  10. On right track for growth model change

What's happening in China

Pearl River swim a Chinese baptism for expats

  1. Typhoon Damrey lands in E China
  2. Woman awakens after she's declared dead
  3. McKinsey launches leadership institute in Beijing
  4. Foreign prostitutes solicit customers in Beijing
  5. 21 killed in Xinjiang mudslide

China Features

  1. Why Hollywood favores China's actresses?
  2. Dongfeng Honda to recall 76,000 CR-Vs
  3. How to protect yourself during heavy rainstorms?
  4. Are synthetic drugs toxic？
  5. Amway vitamin C tablets short in weight

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai