Capital account shifts into the red

The nation posted a deficit of $96 billion under its capital and financial account last year, larger than the $31.8 billion recorded in 2012, underscoring a shift to increasing outbound investment, data from the State Administration of Foreign Exchange showed on Tuesday.

The figure was a sharp contrast to a surplus of $362.2 billion in 2013, sparking concerns of possible capital flight as companies and individuals anticipate a slowing economy and stronger dollar.

But economists shrugged off those concerns, saying that the capital account deficit reflected that the country has entered a period of capital exports, driven by increasing outbound investment and acquisitions by State-owned and private enterprises.