SAFE warns of volatile cross-border capital flows

Rising risks in financial, property sectors may lead to an increase in foreign-currency holdings

China may see greater volatility of cross-border capital flows this year as reforms are accelerated to free up the capital account, the foreign exchange regulator said on Tuesday.

The persistent economic downward pressure as well as accumulated risks in the financial and property sectors may increase the volume of assets held in foreign currencies, increasing capital outflows in the short term, according to a report from the State Administration of Foreign Exchange.