SAFE reports $47 billion capital account deficit

Updated: 2012-02-10 19:22

By Wang Xiaotian (chinadaily.com.cn)

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Beijing - China registered a capital and financial account deficit in the fourth quarter, indicating a net capital outflow, according to preliminary data released by the State Administration of Foreign Exchange (SAFE) on Friday.

SAFE reported a $47.4 billion capital and financial account deficit during the period, compared to a $66.2 billion surplus in the third quarter.

Foreign exchange reserves increased by $11.7 billion in the fourth quarter, adjusted for exchange rates and asset price fluctuations, SAFE said.

According to data released by the central bank in January, China's foreign exchange reserves declined on a quarterly basis for the first time in more than a decade, falling to $3.18 trillion at the end of last year from $3.2 trillion at the end of September.

As the trade surplus shrank and capital outflow accelerated, the value of China's portfolio declined in both November and December, the first consecutive monthly drop since the first quarter of 2009.

The current account surplus in the fourth quarter rose to $59.8 billion from $53.4 billion three months earlier, but still reported a year-on-year decline of 41 percent, according to SAFE.