A view of the city skyline, ahead of the annual National People's Congress , in Shanghai, China February 24, 2022. Picture taken February 24, 2022.
Direct investment liabilities - a measure of FDI - were a deficit of $11.8 billion during the July-September period, according to preliminary data of China's balance of payments released late on Friday. As a result, China's basic balance - which encompasses current account and direct investment balances and are more stable than volatile portfolio investments - recorded a deficit of $3.2 billion, the second quarterly shortfall on record.
Xie expects China's central bank to continue counter-cyclical interventions - including a strong bias in daily yuan fixings and managing yuan liquidity in the offshore market- to support the currency in the face of these headwinds.