China Sees Capital Outflows

Report shows fall in China forex purchases

China witnessed a decline in foreign exchange purchases for the second straight month in July, signaling continuous capital outflow from the world's second-largest economy.

According to data released by the People's Bank of China on Tuesday, yuan holdings among Chinese lenders for purchasing foreign exchange stood at 27.36 trillion yuan ($4.4 trillion) at the end of July, a decrease of 24.5 billion yuan from one month earlier.

Lian Ping, chief economist at the Bank of Communications, said tapering off of United States' quantitative easing policies is attributable to the declines, as direction of global capital flows started to change.

"In addition, economic slowdown of China has also made the country less attractive to international capital," Lian said.

And yet more money flows out: US studios, China OK box-office settlement

China and Hollywood studios have reached an agreement that allows United States companies to recover more than $150 million of revenue-sharing box office receipts, ending an almost six-month dispute in the world's fastest growing movie market.

The Motion Picture Association of America Inc issued a statement on Aug 13 from its chairman and CEO Chris Dodd saying the Chinese government had intervened in the dispute between US movie companies and China Film Group Corp, the dominant distributor of foreign movies in the country.

The US businesses will get back the owed revenue in full and the payment process has started, Dodd said.