China's Capital Outflows Surge to $36.7 Billion, Highest Since 2016 in April, Record High

China's capital outflows surged to the highest level since 2016 in April, with cross-border outflow for direct investment reaching a record high. Local Chinese firms purchased the largest amount of foreign exchange from banks since 2016, while exporters held back dollar conversion and residents snapped up foreign currencies for overseas travel. Chinese banks sold $36.7 billion worth of FX to its clients last month, the most since 2016. The outflows underscore headwinds for the yuan amid a weak domestic economy and uncertainties over the Fed's rate trajectory.