China's cross-border capital outflows pressure eases

Pressure on China's cross-border capital outflows eased during the first half of 2016, new data showed on Thursday.

Chinese banks saw a deficit of 49 billion U.S. dollars in foreign exchange sales and purchases in the second quarter, down from 124.8 billion U.S. dollars in the first, according to figures released by the State Administration of Foreign Exchange (SAFE).

This is attributable to the stable macroeconomic environment and subdued renminbi depreciation expectations, SAFE spokesperson Wang Chunying said at a news conference.

The narrowed forex sales/purchase deficit reflected an easing of pressure on cross-border capital withdrawal.

Both Chinese companies and individuals are less willing to acquire foreign exchange, Wang noted.

She said cross-border capital movements will remain "basically stable," due to China's relatively fast economic growth, sound financial system, good fiscal balance, continuous current account surpluses and ample foreign exchange reserves.

China has the world's largest forex reserves, which hit 3.21 trillion U.S. dollars at the end of June, up 13.4 billion U.S. dollars from the end of May.

"Adequate forex reserves provide China with a solid foundation to withstand external shocks," Wang said. Endi