China recorded a net capital outflow in the first quarter of 2016, but the volume decreased as economic conditions improve in the country. That was the word from the State Administration of Foreign Exchange at a press conference on Thursday. The agency also says that China will maintain ample foreign exchange reserves and a surplus on the current account.

China's commercial banks sold a net 125 billion US dollars in foreign exchange during the first quarter of 2016. The volume of both purchases and sales dropped 9 percent and 14 percent respectively. Officials say that's an indication that a tendency of capital outflow to ease starting from late last year. Net forex sales stood at 69 billion US dollars in January, but slowed to 35 billion in February and 34 billion in March. Officials say China's cross-border capital flows are back to normal after short-term volatility.

The spokesperson also said China will be able to cope with the U.S. Federal Reserve's rate hike policy normalisation, and maintain ample foreign reserves. Figures show that China's forex reserve volume rebounded in March after falling for two months in a row. Experts say sentiments in the forex market will gradually return to normal as a result, and cross-border capital flow will become more stable as regulator continue to crack down on illegal forex activities.