CHINA'S hidden capital flight surged to a record high in the first half of this year, suggesting that residents wanting to move money abroad are using unrecorded transactions to evade tight capital controls.
That's according to the Washington-based Institute of International Finance, which said the"net errors & omissions" in China's balance of payments, widely seen as an indicator of concealed capital flight, rose to a record high of US$131 billion in the first six months of this year. That was larger than the average US$80 billion recorded during the same period in 2015 and 2016, when outflow pressures intensified, it said.
"Resident capital continued to leave the country via unrecorded transactions," said the IIF's head of China research Gene Ma in an Oct 10 note. While recorded resident outflows of US$74 billion were the smallest in 10 years,"the true extent of capital flight seems under-reported," Mr Ma wrote.Net errors and omissions is a category present in balance of payments accounting to reflect flows that can't be explained elsewhere.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: The Straits Times - 🏆 8. / 63 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »