Capital outflows to continue out of China in 2016: analysts

Beijing

CAPITAL outflows from China seem to be easing, but analysts say respite for the central bank may be short-lived as downward pressures on the yuan remain.

In February, for the first time in more than half a year, capital outflows showed some signs of stabilising. The gap between the onshore yuan and offshore in Hong Kong retracted, and in February and March net reserves fell by an estimated US$28.6 billion and US$35 billion respectively. That compares with US$100 billion previously.

This comes after repeated statements by China's central bank, the People's Bank of China (PBOC), and other government officials that the yuan will remain stable, with tougher controls on the capital …