The People’s Bank of China, along with commercial banks, bought net 12.9 billion yuan ($2.02 billion) worth of foreign exchange in October, data showed on Sunday, stemming heavy sales in the previous three months that underlined capital outflows.
- This reverses outflows in the previous 3 months (September was a record net sale of 761.3 billion yuan ($119.45 billion))
- Analysts say the government's efforts to step up monitoring of foreign exchange transactions and a rebound in the stock market may have limited capital outflows
- Outflow pressure may persist with the Chinese economy still faces downward pressures, and the Fed being seen as increasingly likely to hike rates
