CHINA’S central bank and commercial banks sold a record net 761.3 billion yuan (US$119.85 billion) in foreign exchange in September, data showed Friday, as capital outflows weighed on the yuan after its devaluation the previous month.

    The September figure surpassed the net 723.8 billion yuan sold in August, according to calculations based on central bank data.

    Worries over China’s economic slowdown and possible interest rate rises by the U.S. Federal Reserve have led to a wave of capital outflows that intensified after the yuan’s devaluation Aug. 11.

    The move roiled global markets for several weeks. Chinese authorities moved to contain fears over the potential for further depreciation.

    The central bank tried to stem the yuan’s slide, intervening in both onshore and offshore markets.

    The onshore yuan has generally strengthened, albeit slightly, during the past three weeks, buoyed partly by reforms that traders say will enhance the Chinese currency’s international status.

    Li Huiyong, an economist at Shenyin & Wanguo Securities in Shanghai, said he expected fund outflows to ease in October as the domestic stock market recovers after a crash over the summer that sparked a series of government bailout measures.

    “But the yuan still faces pressure because of risks in China’s economy and other uncertainties in financial markets,” Li said.

    Data due out today is expected to show China’s growth slowed to 6.8 percent in the third quarter, the weakest since the global financial crisis, which would likely put pressure on policymakers to roll out more support measures.

    Authorities have taken a series of steps to curb capital flight, including clamping down on illegal cross-border money transfers conducted by underground money dealers and ordering banks to bolster checks on suspicious transactions. (SD-Agencies)