China's efforts to stem capital outflows start to pay off

Beijing

CHINA'S campaign to stop cash flooding out of the country is showing some success.

For the first time since the yuan's devaluation in August 2015, Chinese banks last month registered net inflows under the capital account, according to cross-border payments figures released last Thursday by the currency regulator. The yuan, which plunged last year by the most in two decades, is now heading for its biggest monthly advance against the US dollar since March.

While the US$13.5 billion influx recorded for December is dwarfed by the estimated US$1.2 trillion that has left China since the 2015 devaluation, the situation may be at a turning point, according to OCBC. Efforts to stem the outflow tide - from tighter restrictions on companies' outbound investments to extra hurdles to transferring money overseas - appear to be working. US President Donald Trump has also voiced concern over the strength of the greenback, which has lost more than…