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SAFE Acknowledges China Currently Has Capital Outflows

On October 23, 2014, Guan Tao, head of the department of international payments at the State Administration of Foreign Exchange, said at a press conference that China currently has capital outflows but it is considered a risk or a problem. 

According to Guan, for the second quarter, although the trade surplus expanded, posting a current account surplus, China recorded a net outflow of $16.2 billion under its capital account, a reduction from a net inflow of $94 billion in the first quarter. The growth of the foreign reserve for international payments declined from over $100 billion to $20 billion, an 82 percent reduction from the first quarter. Preliminary estimates show that the pattern continued in the third quarter. 

Guan stated that it is possible that capital flows may be more volatile due to the uncertainties of the complex domestic and international environment. 
Source: China News Service reprinted by People’s Daily, October 23, 2014