AI Data Insight
In the fourth quarter of 2025, China's financial account deficit reported 1,661.7 billion RMB. Although slightly narrowed from the previous value of 1,714.7 billion RMB, it remains at a historic high. Despite the current account hitting a record high driven by strong exports during the same period, it was offset by massive capital outflows triggered by the Sino-U.S. interest rate spread and funds seeking yield overseas. The market worries that if this trend continues, the PBOC may face more severe tests of currency depreciation and capital controls.