China Constricts Capital Outflows With Eye on Yuan Stability Amid Trade Pressure

China Constricts Capital Outflows With Eye on Yuan Stability Amid Trade Pressure
U.S. Dollar and China Yuan notes are seen in this picture illustration on June 2, 2017. Thomas White/Reuters
Reuters
Updated:

SHANGHAI—China’s latest attempts at restricting outward investment by its residents show just how nervous policymakers in the world’s second largest economy are about possible capital flight spurred by a broadening Sino-U.S. trade war.

Beijing has been gradually easing monetary and fiscal policy this year, as it seeks to steer the economy through a period of slowing domestic growth and declining stock markets against the backdrop of escalating trade tensions with Washington.