Net capital outflows from China have risen to $530bn in the first 10 months of this year, with October’s outrush exceeding this year’s monthly average amid signs that the appetite for foreign exchange among wealthier Chinese is rising as the renminbi sinks against the US dollar. More than 80% of wealthy households in China surveyed by Financial Times Confidential Research in November said they wished to hold more than 10% of their savings in hard currency, the highest reading this year. The survey covered households earning more than Rmb300,000 ($43,500) annually. This result hints at the pent-up demand for dollars created by the renminbi’s 5.8% depreciation against the greenback this year, putting it on course for its biggest annual decline on record.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved