China expects wilder capital inflow pattern

Beijing (CNS) -- China is likely to retain a surplus in the international balance of payment over the next few years, though capital inflows will shrink and fluctuate more intensively owing to the worsening global financial climate, according to the 2011 report released by the State Administration of Foreign Exchange on Thursday.

In general, the first half of 2011 saw large capital inflows, which were gradually balanced in the second half as the European debt crisis deepened.

The phenomenon is a normal result of both market and policy forces and generally beneficial, commented the state authority.

The report also revealed China's policy direction for the next phase. On the one hand, the authority will assure capital flows are safe from risks, and on the other hand, the administration will take opportunities to reform the current foreign exchange system.