China saw capital inflows in October after four months of outflows

China’s capital flows reversed course in October as the People’s Bank of China and other mainland financial institutions purchased a net RMB12.9 billion (US$2 billion) in foreign exchange, signifying capital inflow after four straight months of outflows, The Financial Times reported. The inflow comes as expectations of currency devaluation ease from a peak in panic that followed a surprise decision by the central bank to change the renminbi’s valuation scheme in August, allowing it to drop without warning. The bank spent hundreds of billions of dollars in the subsequent months to support the currency, a move which now appears to have eased investor concerns that Beijing would allow a larger fall.