State Administration of Foreign Exchange, Jianning: The widening deficit in capital and financial accounts does not necessarily mean an increased pressure for capital outflows.

Jia Ning, director of the International Balance of Payments Department of the State Administration of Foreign Exchange, stated at a press conference today that from the perspective of the overall macroeconomic situation and international balance of payments, the increase in the current account surplus will inevitably correspond to an expansion of the deficit in the capital and financial accounts. Therefore, the expansion of the deficit in the capital and financial accounts should not be simply understood as an increase in capital outflow pressure. In recent years, in China, the expansion of the deficit in the capital and financial accounts is mainly due to the increase in outbound investments by domestic entities, while overall foreign investment in China still maintains a net inflow. Looking ahead, as China continues to optimize its economic structure, the internal and external balance of the economy becomes more stable, and the gradual opening of the financial market will support the maintenance of a basic balance in international payments.