Official figures suggest large amounts of unexplained foreign exchange outflows last year

China has a large "unexplained" foreign exchange outflow in China last year, according to a 2009 China balance of payments data released by safe, Standard Chartered Bank (China) reported today.　　According to the institute, the "net error and omission" item confirmed 2009 as the debit balance of USD 4.35 billion, indicating that there was an "unexplained" foreign exchange outflow in the year, which was positive in the first half of the 2009 year balance of payments, indicating that the foreign exchange outflow occurred in the second half of 2009. The study said that the new foreign exchange reserves, minus the trade surplus and FDI inflows, plus the estimated return on foreign exchange reserves investment, the "unknown reason" foreign exchange inflows.　　According to the calculation, the "Unknown reason" foreign exchange inflow is negative, also proves that there are "unknown reasons" foreign exchange outflow in China.　　According to Standard Chartered, China's reduction of U.S. government debt in 2009 was not a policy-driven process, but rather a spontaneous decision by the financial markets, as domestic banks sold large amounts of dollar assets to recover funds to meet the huge domestic market's demand for credit. According to the data released by the State administration of foreign exchange, domestic banks recovered 66.3 billion of billions of dollars by dumping large amounts of US Treasuries, using the funds to increase the size of foreign currency loans in the country, adding about $104.5 billion trillion in foreign currency loans throughout the year, the institute said.　　This is partly because of the increased risk of holding overseas assets and the higher interest rates on domestic dollar loans. Foreign direct investment in China amounted to $78.2 billion a year in 2009, according to data from the authority.　　With many foreign companies in a quandary in 2009, Standard Chartered considers that there may be a part of the "return investment"-that is, domestic capital flows through various channels to the outside, bypassing Hong Kong or the British Virgin Islands and other offshore centres, and then return to the territory in the name of foreign direct investment to enjoy tax incentives and other regulatory facilities. China's current-account surplus in 2009 amounted to $297.1 billion trillion, accounting for 6.1% of GDP, significantly below the scale of the surplus of 9.6% in 2008, according to the research report.　　The main reason is that the trade surplus of goods narrowed, down 32% to 249.5 billion dollars from a year earlier. Another reason for the decline in the current account surplus was the increase in the trade deficit, which amounted to $29.4 billion trillion, partly because of the increase in the transport deficit.　　In addition, tourism from the 2008 surplus to the deficit, showing that Chinese tourists travel abroad more than foreign tourists to China spending. In addition, the Institute stated that the State administration of foreign exchange reported a net inflow of securities investment of $38.7 billion in 2009. The bulk of foreign investment in Chinese securities, capital inflows increased by 28.8 billion U.S. dollars, an increase of 191%. Among them, QFII investors purchase a-shares investment of only 3.3 billion U.S. dollars, the rest of the majority of foreign purchases of Chinese offshore market shares and debt investment.