China forex trade posts deficit in June
China's June foreign exchange sales surpassed settlement--for the first time this year. Data from the State Administration of Foreign Exchange shows sales were 143.8 billion US dollars, but settlement of foreign exchange totalled 143.4 billion U.S. dollars--this suggests capital outflow.
Officials say this doesn't mean overseas investment is voluntarily withdrawing from China. Capital inflow has been slowing in the past two months due to the U.S. Fed's outlook on quantitative Easing. Forex sales rose in June on strong demand in overseas education and firm dividends. SAFE is forecasting China's forex trade to stabilize in the second half of the year.