China's central bank has reported a record net outflow of $457 billion in November, driven by a significant reduction in securities investments inflows. The data, released by the State Administration of Foreign Exchange, shows that securities investment inflows totaled $1.889 trillion in November, while outflows reached $2.346 trillion, resulting in a net outflow of $457 billion. This marks the largest net outflow on record for the account.
According to a report by a Chinese media outlet, the net outflow was caused by a combination of factors, including a significant reduction in securities investment inflows, a decline in net southbound buying, and a decrease in overseas investor net purchases of domestic bonds. The report suggests that the actual November net outflow may be lower than the recorded $900 billion, as the data has been inflated due to a historical tendency for the fitted data to be slightly larger than the actual inflow/outflow.
The news has sent shockwaves through the financial markets, with many analysts expressing concern about the potential impact on China's economy. The country's central bank has vowed to take necessary measures to stabilize the market and prevent a further downturn. The full implications of this development are yet to be seen, but it is clear that China's economy is facing significant challenges in the coming months.