AI Data Insight
Net inflows into China's narrow capital account fell to 770 million RMB in the second quarter of 2026, representing a precipitous decline compared to the 20.52 billion RMB recorded in the first quarter. The latest data from the State Administration of Foreign Exchange shows a significant deficit in the overall "capital and financial account," reflecting that funds still have a tendency to move outward amid weak domestic demand and a yield spread disadvantage. How subsequent official policies stabilize foreign investor confidence will be the core focus of the market.