Comments from the Chinese State Administration of Foreign Exchange

  • China has the ability to handle capital flow impact
  • Capital outflows in 2015 were due to domestic banks and firms increasing offshore forex asset holdings (Righto ;-) )
  • Expects a current account surplus in 2016
  • Expects capital and financial account deficit in 2016
  • China's FX reserves remain sufficient

The comments come after they eased the QFII upper limit earlier today allowing easier rules on foreign outflows