China

China's twin capital and current account surpluses will remain, even as firms and individuals are increasingly encouraged to invest abroad, the State Administration of Foreign Exchange (SAFE) has said. According to SAFE, Chinese citizens bought three times more foreign exchange in 2007 than in 2006 after rules governing such transactions were relaxed, and the amount of money channeled out of the country through its QDII programme had reached US$35.3bn. Nonetheless, the latest available data revealed that China's current account surplus rose 78% y-o-y in H107 to a record US$162.9bn, while its capital and financial account surplus climbed a massive 136% to US$90.2bn.

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