‘Clear signals’: Why China looks set to expand capital outflow channels

China’s robust trade surplus will pave the way for Beijing to further open its capital account, as a stronger surplus can give it more leeway to accommodate capital outflows while advancing the nation’s push for yuan internationalisation, according to an economist. “Given the substantial size of China’s trade surplus, it is fully capable of absorbing current capital outflows,” Ding Shuang, Standard Chartered’s chief economist for Greater China and North Asia, said at a media briefing on...