China ’s high -level focus on capital outflow is said to be careful to treat foreign

(Beijing Bloomberg) revealed that in response to China's domestic economic downlink risks and the Federal Reserve ’s interest rate hikes, Chinese senior management is paying attention to capital outflows and requires relevant departments to be more cautious when reviewing foreign expenditures and investment plans.

Bloomberg Society on Thursday (July 14) quoted insiders who did not want to name, saying that the above instructions will be issued to Chinese state -owned enterprises from late June, and these companies are required to treat overseas investment cautiously.The relevant instructions did not set specific goals and restrictions, but this highlights the Chinese government's concerns about capital outflow.

The Chinese Ministry of Commerce, SASAC and the State Administration of Foreign Exchange, which are in charge of foreign investment, state -owned enterprises and foreign exchange businesses, did not immediately reply to Bloomberg's comment request.

Affected by factors such as the crown disease and the interruption of supply chain, the downward pressure on China's economy has increased significantly. This year, it is difficult to achieve the target of about 5.5 % of the economic growth targets of about 5.5 % this year.Economists predict that China's economic growth in the second quarter that will be announced on Friday may fall to 1.2 %.

At this time, the differentiation of the Chinese and US currency policy has intensified, which may lead to China's capital outflow.Under the expectations of the Federal Reserve's unprecedented interest rate hikes this month, the US 10 -year Treasury yield rate has increased by 144 basis points this year, while China's same period of sovereign bond yields have risen only two base points.

A report from the International Finance Association in May predicts that the scale of China's capital outflow this year is expected to turn up to about 300 billion US dollars (about S $ 420.2 billion).

Dongfang Huili Economist Zhi Xiaojia pointed out that the impact of the overflowing effects of Federal interest rate hikes is not surprising. In the short term, China will also face the outflow of capital outflows in the short term."Chinese officials may take multiple measures to relieve stress, including giving more window guidance, or strengthening cross -border funding management measures."