China is expected to see fluctuations in cross-border capital flows for the rest of the year as economic uncertainty lingers, Reuters reported, citing the State Administration of Foreign Exchange. The regulator also said that the cloudy economic environment was likely to shrink China’s trade and capital account surpluses in coming months. China revised up its current account surplus for the second quarter on Friday to US$50.9 billion, from a preliminary US$48.2 billion. The capital and financial account surplus in the world’s second-largest economy was also revised sharply higher to US$28.6 billion, from a preliminary deficit of US$1.6 billion.
China Economic Review will be taking a break for the National Day holiday. We will resume publishing on October 8.