AI Data Insight
In Q1 2026, China's capital and financial account experienced a massive reversal, recording a 13.29 billion RMB surplus, strongly turning positive from the severe deficit of -1.66 trillion RMB in the previous quarter. Although preliminary estimates indicated a deficit, the final data reflects that the Beijing authorities' iron-fisted policies to prevent capital outflows have had a substantial effect. With the "Overseas Investment Regulations" set to take effect in July, the capital account is expected to maintain a stabilizing trend in the short term.