China's forex regulator says foreign outflows 'under control' - REUTERS
MAY 25, 2022
By Selena Li
However, the country’s slowing economy, reeling under strict COVID-19 containment measures, and U.S. interest rate hikes have resulted in a surge in outflows in recent months, weighing on the currency.
The latest monthly flows data showed foreigners withdrew a net $17.5 billion from local shares and bonds in March.
Volatility in China’s financial markets and foreign investment into the country was “a natural response” in a “complicated context”, Wang Lei, Deputy Director-General, Capital Account Management Department, State Administration of Foreign Exchange (SAFE) told a virtual China capital market conference.
“We see that inflow and outflow are quite natural in securities investment. Everything has been well under control and I see this partial adjustment doesn’t change the overall balance of the cross-border capital flow(s) in China.” (Reporting by Selena Li; Editing by Sonali Desai)