China capital flows gauge falls as state television reports net outflow

Yuan positions on the balance sheet of the People’s Bank of China fell RMB129.9 billion (US$20.7 billion) in December from the previous month as China posted a net capital outflow for 2014, Bloomberg reported, citing a statement from the bank and a report from broadcaster China State Television. The yuan positions data show the PBoC “had to intervene to sell foreign currency from its reserves and buy the yuan to prevent sharp moves,” Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB, said.