Chinese companies rushed to shift money back into their home market last month as US rate cuts reduced returns on dollar assets, leading to the largest monthly capital inflow in about two years.
Last month, domestic firms sold the most foreign exchange to banks since December 2021, a sharp reversal from their large purchases of US dollars and other currencies over the past year, official data released Tuesday show. The figures also revealed a rise in foreign currency settlement for goods trade, signaling growing confidence in the yuan’s stability, and record levels of FX sales related to securities investments.
