Capital inflows to China rise in H2

China may experience more capital inflows in 2014 as the renminbi recovers due to improved confidence in the economy, Reuters reported, citing the state foreign exchange regulator. “The domestic economy is stabilizing, which helps boost market confidence, and the foreign trade situation has started improving, and the interest rate differential remains. These factors could lead to pressure on capital inflows,” Guan Tao, the head of the department of international payments at the State Administration of Foreign Exchange, said on Wednesday. But capital flows could remain volatile in the second half as the economy still faces uncertainties, along with risks from monetary policy adjustments in major economies.