Goldman Sachs using its preferred measure, alongside official data from China, of FX capital flows:
- Capital outflows from China rose sharply to $75 billion in September (from $45bn in August)
- biggest monthly amount since 2016
- underscoring intensifying depreciation pressure on the yuan
- driven by current account outflows as foreign investors' net selling of equities and bonds slowed
- $35 billion in net outflows via onshore outright spot transactions last month, as well as $45 billion of net yuan payment from onshore to offshore
Goldman Sachs says its sticking to its 7.3 USD/CNY year-end forecast despite the fierce yuan deprecation pressure
- pointing to PBOC efforts to limit the Chinese currency's decline
- "Policymakers appear to put more weight on confidence and stability in FX management,"
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Goldman Sachs info via Reuters.
Weekly USD/CNY chart:
