China's central bank said on August 14 that yuan funds outstanding for foreign exchange fell to 25.66 trillion yuan ($4.07 trillion) at the end of July. It was a drop of nearly 3.82 billion yuan ($606.35 million) month on month.
The dip was the result of the country's shrinking export and foreign direct investment amid global economic woes. Trade surplus stood at $25.15 billion in July, far less than market expectations. Export growth edged up 1 percent in July from one year earlier, but fell 1.8 percent month on month.
The decrease in yuan funds outstanding for foreign exchange is also a strong indication of speculative capital flowing out of the country amid the sovereign debt crisis in Europe, the economic slowdown in the United States and rising expectation of a weaker yuan, analysts said.
China's slowing economy has raised concerns over its growth prospects, and has to some extent accelerated the exodus of foreign capital from the country. |