Pressure on China's cross-border capital outflows has gradually eased, according to China's foreign exchanged regulator on Monday, after data showed commercial banks' foreign exchange volume dropped in May.
China's commercial banks sold a net 12.5 billion dollar worth of foreign exchange in May, versus net sales of 23.7 billion dollars in April, data from the State Administration of Foreign Exchange showed. Both Chinese companies and individuals are less willing to acquire foreign exchange, the regulator added, citing data that outstanding foreign currency deposits in China declined by 8.8 billion dollars in May compared with an increase of 900 million dollars in April. Companies' efforts to deleverage their foreign debt also slowed. Net forex sales totalled 161.0 billion dollars in the first five months.