'Further volatility' for capital flows in H2

Cross-border capital flows will remain volatile in the second half of the year, the nation's foreign exchange regulator said on Wednesday.

Guan Tao, the head of the department of international payments at the State Administration of Foreign Exchange, told a news conference in Beijing that China faces pressure from capital inflows because the economy is stabilizing, which will boost market confidence. The pressure will also increase as exports recover and the difference between domestic and foreign interest rates persists.

On the other hand, Guan said, uncertainties are still casting shadows over China's economy as it faces the dual challenges of restructuring and decelerating growth. In addition, the monetary policies of major economies remain uncertain as these countries are still making adjustments, he said.