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Special Report

Mapping China's Capital Outflows: A Balance Of Payment Perspective

by Qingyun Xu, Associate Editor  

China's capital outflows since last year can be broadly grouped into three categories: reduced foreign inflows (and accelerated outflows), domestic firms deleveraging dollar debts, and domestic entities increasing dollar assets. Barring an extreme scenario, the PBoC should have more than enough ammunition to defend the RMB, should it opt to.

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