Goldman Sachs using its preferred measure, alongside official data from China, of FX capital flows:
- Capital outflows
from China rose sharply to $75 billion in September (from $45bn in August) - biggest monthly amount since 2016
- underscoring intensifying
depreciation pressure on the yuan - driven by current account outflows as
foreign investors’ net selling of equities and bonds slowed - $35 billion in net outflows via onshore outright
spot transactions last month, as well as $45 billion of net yuan
payment from onshore to offshore
Goldman Sachs says its sticking to its 7.3 USD/CNY year-end forecast despite the fierce yuan deprecation pressure
- pointing to PBOC efforts to limit the Chinese currency’s
decline - “Policymakers appear to put more weight on confidence and
stability in FX management,”
—
Goldman Sachs info via Reuters.
Weekly USD/CNY chart: