$71b deficit booked in intl payment

Capital flowed out from the Chinese market in the first half of the year, but it was not "a massive and concentrated evacuation", according to an official from the State Administration of Foreign Exchange.

China's balance of international payments in the second quarter showed a deficit of $71.4 billion in the capital and financial account after a surplus in the first three months, indicating that capital might have flowed out at a faster pace, the administration said.

"The recent changes were mainly because foreign exchange assets are shifting from the central bank to domestic institutions and individuals," the official said, denying that large amounts of foreign capital are evacuating.

"Even if the data showed a net outflow of capital, it is still affordable."

In the first quarter, the capital and financial account surplus was $51.1 billion, compared with a deficit of $48 billion in the fourth quarter of last year, according to the data.

China Daily - Agencies