Mainland investors' aggressive buying of Hong Kong assets and expanded offshore investment channels drove China's capital outflows to a record high last month, reported Bloomberg News.
China's capital outflows reached an all-time monthly high in July, with domestic banks wiring a net US$58.3 billion overseas for securities investment, according to the State Administration of Foreign Exchange. The figure marks the largest outflow since records began in 2010, reported Bloomberg News.
The surge was fuelled by mainland investors' robust purchases of Hong Kong stocks and the July expansion of the Southbound Bond Connect programme, which permits greater access to offshore debt markets. Foreign investors, meanwhile, continued reducing their holdings of Chinese bonds, citing lower relative returns compared with riskier global assets.
Authorities are expected to tolerate moderate capital outflows this year, using the current weak-dollar environment to further liberalise the capital account. The move is seen as part of a broader strategy to support the yuan's internationalisation.
In June, regulators increased the quota for approved investors to allocate funds into overseas assets, marking the first such adjustment in over a year.
SeaNews Turkey
China's capital outflows reached an all-time monthly high in July, with domestic banks wiring a net US$58.3 billion overseas for securities investment, according to the State Administration of Foreign Exchange. The figure marks the largest outflow since records began in 2010, reported Bloomberg News.
The surge was fuelled by mainland investors' robust purchases of Hong Kong stocks and the July expansion of the Southbound Bond Connect programme, which permits greater access to offshore debt markets. Foreign investors, meanwhile, continued reducing their holdings of Chinese bonds, citing lower relative returns compared with riskier global assets.
Authorities are expected to tolerate moderate capital outflows this year, using the current weak-dollar environment to further liberalise the capital account. The move is seen as part of a broader strategy to support the yuan's internationalisation.
In June, regulators increased the quota for approved investors to allocate funds into overseas assets, marking the first such adjustment in over a year.
SeaNews Turkey
