Curbs on capital outflow unlikely: PBOC advisor

Chinese policy makers’ intensified efforts to stem capital outflows have been effective and new measures are unlikely, said Fan Gang, an advisor to the People’s Bank of China (PBOC). “Things are stabilising now,” said Fan in an interview with Bloomberg Television in Shanghai. While the market has started to respond, policy makers won’t completely drop intervention yet, he said.

Capital flight has accompanied the yuan’s steepest annual drop in more than two decades. Policy makers strengthened measures at the beginning of the new year to reduce outflows, including adding extra requirements for citizens converting yuan into foreign currencies after the annual $50,000 quota for individuals reset January 1.