Capital is leaving China at the fastest pace in more than 7 years, sending the yuan lower

• The pace of China’s capital flight hit the highest monthly outflow since early 2016.
• Nearly $54 billion was sent overseas on behalf of banking clients. 
• This is pressuring the yuan down, which is now trading at around 7.32 against the dollar.

Capital flight out of China has amplified in recent weeks, pulling down on the yuan in the process, as the economic outlook and real estate crash continue to weigh on investors.

Outflows have become a stubborn theme for Chinese markets in 2023, and $53.9 billion was sent overseas on behalf of banking client, according to State Administration of Foreign Exchange data cited by Bloomberg. That’s the largest monthly outflow since January 2016.