Cross Border Capital Flows To Remain Stable In 2023

Cross border capital flows will remain stable in 2023 as China might be the only major economy with significant growth, said Wang Chunying, deputy director of the Foreign Exchange Bureau, according to Securities Daily. China will maintain a relatively large trade surplus as it promotes diversification of export markets and upgrades regional trade cooperation. With the economic recovery, the attractiveness of yuan assets will increase foreign investment in onshore securities, and China’s current account will maintain a reasonable surplus. The recent decline in inflation data in major developed economies may ease the pace of monetary tightening which will help capital inflows, he said.